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Question 21 Chapter 5 of +2-B
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Table of Contents
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 |
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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 |
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Hello sir,
How it is calculated. Can you give me video of this question.
Please.
Thanks for the suggestions.
and also Sorry we can’t give you the videos of all questions.
but for this session, we will provide the full book solution.