Question 23 Chapter 5 of +2-B – USHA Publication 12 Class

Question 23 Chapter 5 of +2-B

Question 23 Chapter 5 of +2-B

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 30,00035,000
General Reserve 10,00015,000
Provision for depreciation on Plant 30,00035,000
Outstanding expenses 5,0003,000
Goodwill 20,00010,000
Trade Receivable 40,00035,000

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 off10,00021,000
  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 ₹
ParticularAmount ₹
  By Bal b/d30,000
  By Profit & Loss A/c – Depreciation (Bal. fig.)5,000
To Bal c/d35,000  
 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

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 23 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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