Question 19 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 19 Chapter 5 of +2-B

Question 19 Chapter 5 of +2-B

19. Compute Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2019 is Rs 10,000 after providing for depreciation of Rs 2,000.
(ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and 2019 are as follows:

Particulars 31st March, 2018 (Rs) 31st March, 2019 (Rs)
Trade Receivables 14,000 15,000
Provision for Doubtful Debts 1,000 1,200
Trade Payables 13,000 15,000
Inventories  5,000 8,000
Other Current Assets  10,000 12,000
Expenses Payables 1,000 1,500
Prepaid Expenses 2,000 1,000
Accrued Income 3,000 4,000
Income Received in Advance 2,000 1,000

 

The solution of Question 19 Chapter 4 of +2-B: –

 


Cash Flow From for the year ended 31st March, 2019
Particulars
Rs
Profit as per Statement of Profit and Loss   10,000
Items to be Added:    
Depreciation   2,000
Profit Before Tax and Extraordinary items   12,000
Less: Increase in Current Assets    
Accrued Income 1,000  
Inventories 3,000  
Other Current Assets 2,000  
Trade Receivables 1,000  
Less: Decrease in Current Liabilities    
Income Received in Advance 1,000  
Add: Increase in Current Liabilities    
Expenses Payable 500  
Provision for Doubtful Debts 200  
Trade Payables 2,000  
Add: Decrease in Current Assets    
Prepaid Expenses 1,000 4,300
Net Cash Flows from Operating Activities   1,54,800

 


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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 19 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements