Question 20 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 20 Chapter 5 of +2-B

Question 20 Chapter 5 of +2-B

20. Calculate Cash Flow from Operating Activities from the following information:

INCOME STATEMENT (STATEMENT OF PROFIT AND LOSS) for the year ended 31st March, 2019
Particulars Note No. Rs
I. Revenue from Operations Sales   5,98,000
II. Other Income 1 19,500
III. Total Revenue I +II   6,17,500
IV. Expenses;    
Cost of Materials Consumed   4,00,000
Change in Inventories of Finished Goods and Work-in-Progress 2 15,000
Employee Benefit Expenses   1,05,000
Depreciation and Amortisation Expenses    15,000
Other Expenses  3 20,000
Total Expenses   5,55,000
V. Profit before Tax III −IV   62,500
VI. Tax @ 30%   18,750
VII. Profit after Tax V −VI   43,750

Notes to Accounts

Particulars Rs
1. Other Income  
Rent 15,000
Gain Profit on Sale of Machinery 2,500
Interest on Debentures held as Investments 2,000
  19,500
2. Change in Inventories of Finished Goods and Work-in-Progress  
(a) Finished Goods  
Opening Inventories 37,500
Less: Closing Inventories 25,000
Sub-Total 12,500
b Work-in-Progress  
Opening Inventories 22,500
Less: Closing Inventories 20,000
Sub-Total  2,500
Total a +b  15,000
3. Other Expenses  
Office Expenses 12,500
Selling Expenses 6,000
Loss on Sale of Furniture 1,500
  20,000
Current Assets and Current Liabilities As on 31st March, As on 1st April,
  2019 (Rs) 2018 (Rs)
Trade Receivables 25,000 20,000
Trade Payables 32,500 35,000
Outstanding Expenses 8,000 5,000
Prepaid Expenses 5,000 3,500

 

The solution of Question 20 Chapter 4 of +2-B: –

 


Cash Flow From for the year ended 31st March, 2019
Particulars
Rs
I. Cash Flow from Operating Activities    
Profit as per Statement of Profit and Loss   43,750
Add: Provision for Tax   18,750
Profit Before Taxation   62,500
Items to be Added:    
Depreciation and Amortization Expenses 15,000  
Loss on Sale of Furniture 1,500  
Items to be Deducted:    
Profit on Sale of Machinery 2,500  
Rent 15,000  
Interest on Investment 2,000  
Operating Profit before Working Capital Adjustments   59,500
Less: Increase in Current Assets    
Trade Receivables 5,000  
Prepaid Expenses 1,500  
Add: Decrease in Current Liabilities    
Trade Payables 2,500  
Add: Increase in Current Liabilities    
Outstanding Expenses 3,000  
Add: Decrease in Current Assets    
Inventories of Finished Goods and Work-in-Progress 15,000  
Cash Generated from Operations   68,500
Less: Tax Paid   18,750
Net Cash Flows from Operating Activities   49,750

 


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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 20 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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