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

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:

 Particulars 31.3.2021 ₹ 31.3.2022 ₹ Profit and loss A/c 1,00,000 4,00,000 Provision for tax 30,000 30,000 Trade payable 40,000 1,50,000 Current assets (inventories & trade receivables) 4,60,000 5,20,000 Fixed assets 8,50,000 9,32,000 Accumulated depreciation 4,25,000 4,40,000

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

 Particulars ₹ (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 1,10,000 50,000 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/d 8,50,000 By balance b/d 1,05,000 To bank a/c (purchase) (B. fig) 1,87,000 By balance c/d 9,32,000 10,37,000 10,37,000

3 .

Provision for depreciation account

 Particulars ₹ Particulars ₹ To assets disposal A/c 65,000 By balance b/d 4,25,000 To balance c/d 4,40,000 By P& L A/c (B. fig.) (dep. provided during the current year 80,000 5,05,000 5,05,000

4.

Asset’s disposal account

 Particulars ₹ Particulars ₹ To fixed assets A/c 1,05,000 By provision for depreciation 65,000 By bank A/c (sale proceeds B. fig.) 32,000 By P& L A/c (loss on sale 8,000 1,05,000 1,05,000

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