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 6,00018,000
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 21,00079,000
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 year10,000 
Provision for taxation15,00025,000
  49,000
Add Non-Cash Items :  
Depreciation20,000 
Loss on sale of the building5,000 
Goodwill amortized8,00033,000
Less: Non-Operating Incomes:  
Profit on sale of machinery5,000 
Dividend received3,000 
Commission Accrued4,000(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

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