Question 22 Chapter 5 of +2-B – USHA Publication 12 Class

Question 22 Chapter 5 of +2-B
Q-22- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution


Question 22 Chapter 5 of +2-B


Indirect Method

22. (Cash Flow from Operating Activities/Proposed dividend for Current Year) From the particulars calculate net cash from operations :

Operating profit after Income Tax provision 1,53,000 6,28,000
Insurance Claim received 1,00,000
Proposed dividend for current year 72,000
Depreciation 1,40,000
Loss on sale of machinery 30,000
Profit on sale of investments 20,000
Dividend received on investments 6,000
Decrease in current assets (other than cash and cash equivalents) 10,000
Increase in current liabilities 1,51,000
Increase in current assets (other than cash and cash equivalents) 6,00,000
Decrease in current liabilities 64,000
Income tax paid 1,18,000
Income tax refund received 3,000

The solution of Question 22 Chapter 5 of +2-B: – 

Cash Flow from Operating Activities
Net Profit after tax 6,28,000
Add: Provision for taxation 1,50,000
Net Profit before Income Tax 7,78,000
Add Non-Cash Items :  
Depreciation 1,40,000
Operating profit before the change in working capital changes 9,18,000
Add: Decrease in Current Assets10,000 
Increase in Current liabilities1,51,0001,61,000
Less: Increase in Current Asserts6,00,000 
Decrease in Current liabilities64,0006,64,000
Cash Generated from Operating Activities 4,15,000
Less: Income tax paid 1,15,000
Cash flow from Operating Activities before Extraordinary items 3,00,000
Add: Insurance Claim Received 1,00,000
Cash Flow from Operating activities 4,00,000

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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statement



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