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

Question 26 Chapter 5 of +2-B

Table of Contents

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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