Question 23 Chapter 5 of +2-B
Table of Contents
Indirect Method
23. (Cash Flow from Operating Activities/Acc. Dep. on Plant Sold) Calculate cash fib from operating activities from the following :
Opening ₹ | Closing ₹ | |
Surplus i.e. balance in Statement of Profit and Loss | 30,000 | 35,000 |
General Reserve | 10,000 | 15,000 |
Provision for depreciation on Plant | 30,000 | 35,000 |
Outstanding expenses | 5,000 | 3,000 |
Goodwill | 20,000 | 10,000 |
Trade Receivable | 40,000 | 35,000 |
An item of a plant costing ₹ 20,000 having book value ₹ 14,000 was sold for 18,000 during the year.
The solution of Question 23 Chapter 5 of +2-B: –
Cash Flow from Operating Activities |
||
Particulars |
Rs |
|
Net Profit as per Statement of Profit and Loss | 5,000 | |
Add: Transfer to General Reserve | 5,000 | |
Net Profit before Income Tax | 10,000 | |
Add Non-Cash Items : | ||
Depreciation on Plant* | 11,000 | |
Goodwill wrote off | 10,000 | 21,000 |
31,000 | ||
Less: Non-Operating income | ||
Profit on sale of Plant | (4,000) | |
Operating Profit before the change in Working Capital | 27,000 | |
Add: Decrease in Current Asserts | ||
Sundry Debtors | 5,000 | |
32,000 | ||
Less: Decrease in Current Liabilities | ||
Outstanding Expenses | (2,000) | |
Cash Flow from Operating activities | 30,000 |
Working Note:
Particulars |
Amount ₹ |
Particular | Amount ₹ |
By Bal b/d | 30,000 | ||
By Profit & Loss A/c – Depreciation (Bal. fig.) | 5,000 | ||
To Bal c/d | 35,000 | ||
35,000 | 35,000 |
Increase in Depreciation Provision | = | 5,000 |
Add : Depreciation on Plant (₹ 20,000 – ₹ 14,000) | = | 6,000 |
Total Depreciation | = | 11,000 |
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

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