Question 26 Chapter 5 of +2-B – USHA Publication 12 Class

Question 26 Chapter 5 of +2-B

Question 26 Chapter 5 of +2-B

Indirect Method

26. (Cash Flow from Operating Activities/Income Tax & Refund) Profit and loss statement, for the year ended 31″ March 2018. Prepare a statement, showing cash from operating activities.

  Particulars   31st March 2018
I Net Revenue from Operations    2,00,000
II Other Incomes   
III Total Revenue (I + II)    2,00,000
IV Expenses :    
  Depreciation and amortization expenses :     
  Depreciation    30,000
  Goodwill wrote off    10,000
  Total Expenses    40,000
V Profit before extraordinary exceptional items and tax    1,60,000
VI Exceptional items :     
  Profit on sale of machinery  20,000  
  Tax refund  10,000 30,000
  Loss on Sale of Land    -20,000
VII Profit before tax   1,70,000
VIII Tax. Expenses Current (Provision)   -30,000
  Profit after Tax (Net)    1,40,000

 

The solution of Question 26 Chapter 5 of +2-B: – 


Cash Flow from Operating Activities
Particulars
Rs
Profit after tax   1,40,000
Add: Income tax Provision   30,000
Profit Before tax   1,70,000
Add Non-Cash and Non-Operating Items :    
Depreciation 30,000  
Goodwill amortized 10,000  
Loss on sale of land 20,000 60,000
    2,30,000
Less: Non-Operating Incomes :    
Profit on sale of Machinery 20,000  
Tax refund 10,000 (30,000)
Cash from Operating Activities before tax   2,00,000
Less: Income tax Paid   (20,000)
Cash Flow from Operating activities
  1,80,000


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

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