Question 21 Chapter 5 of +2-B – USHA Publication 12 Class

Question 21 Chapter 5 of +2-B

Question 21 Chapter 5 of +2-B

Indirect Method

21. (Cash Flow from Operating Activities/Proposed dividend for Previous Year) From the following statement calculate cash generated from operating activities :

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDING 31ST MARCH, 2018 
Particular
Revenue earned-Gross Profit    85,000
Add: Other Incomes     
Profit on sale of machinery  5,000  
Dividend received  3,000  
Commission accrued  4,000  
Income tax refund  6,000 18,000
Total Income    1,03,000
Less : Expenses incurred to earn revenue     
Salaries  10,000  
Rent  5,000  
Depreciation  20,000  
Loss on sale of Building  5,000  
Goodwill amortized  8,000  
Proposed dividend for the previous year  10,000  
Provision for Income tax  21,000 79,000
Net Profit    24,000

The solution of Question 21 Chapter 5 of +2-B: – 


Cash Flow from Operating Activities
Particulars
Rs
Net Profit as per Statement of Profit and Loss   24,000
Add Non-operating items :    
Proposed dividend for the previous year 10,000  
Provision for taxation 15,000 25,000
    49,000
Add Non-Cash Items :    
Depreciation 20,000  
Loss on sale of the building 5,000  
Goodwill amortized 8,000 33,000
Less: Non-Operating Incomes:    
Profit on sale of machinery 5,000  
Dividend received 3,000  
Commission Accrued 4,000 (12,000)
Cash generated from Operating Activities   70,000
Less: Tax Paid   (15,000)
Cash Flow from Operating activities   55,000


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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

2 Book 3 min 225x300 - Question 21 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

Leave a Reply