Question 24 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question no 24 Chapter no 8 unimax class12 part 2
Question no 24 Chapter no 8 unimax class12 part 2


Question 24 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021


24.from the following information, calculate net cash flow from operating activities and investing activities:

Particulars31.3.2021 ₹31.3.2022 ₹
Profit and loss A/c1,00,0004,00,000
Provision for tax30,00030,000
Trade payable40,0001,50,000
Current assets (inventories & trade receivables)4,60,0005,20,000
Fixed assets8,50,0009,32,000
Accumulated depreciation4,25,0004,40,000

Additional information:
A machine has a book value 40,000 (depreciation provided thereon 65,0000 was sold at a loss of 8,000. Tax paid during the year was 30,000.

The solution of Question 24 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

 Calculation of cash from Operating Activities and Investing Activities

(i)cash flow from operating activities  
(A)net profit before tax 3,30,000
(B)add: depreciation 80,000
Loss on sale of machinery 8,000
Operating profit before working capital changes 4,18,000
Changes in current assets & current liabilities:  
Less: increase in current assets (60,000) 
Add: increase in trade payables 1,10,00050,000
Net cash flow from operating activities before tax 4,68,000
Less: tax paid (30,000)
Net cash inflow operating activities after tax 4,38,000
ii. cash flow from investing activities  
Sale of machinery 32,000
Purchase of fixed assets (1,87,000)
Net cash used in investing activities 1,55,000

Working notes:


1. Calculation of net profit before tax 
Closing balance of P& L a/c 4,00,000
Less: opening balance of P & l a/c (1,00,000)
Add: tax 30,000
Net profit before tax 3,30,000

2 .

 Fixed assets account (at cost)

Particulars Particulars
To balance b/d8,50,000By balance b/d1,05,000
To bank a/c (purchase) (B. fig)1,87,000By balance c/d9,32,000
 10,37,000 10,37,000

3 .

Provision for depreciation account

Particulars Particulars
To assets disposal A/c65,000By balance b/d4,25,000
To balance c/d4,40,000By P& L A/c (B. fig.) 
  (dep. provided during the current year80,000
 5,05,000 5,05,000


Asset’s disposal account


Particulars Particulars
To fixed assets A/c1,05,000By provision for depreciation65,000
  By bank A/c (sale proceeds B. fig.)32,000
  By P& L A/c (loss on sale8,000
 1,05,000 1,05,000



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Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

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