Question 28 Chapter 5 of +2-B – USHA Publication 12 Class

Question 28 Chapter 5 of +2-B
Q-28- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution

Question 28 Chapter 5 of +2-B

Indirect Method

28. (Cash Flow from Operating Activities) Calculate cash from operating activities from the following details.

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018 
  Particulars Note No. Fig. for the Current reporting period
I Revenue from Operations (Net)    1,00,000
II Other Incomes     
  Profit on Sale of machinery    10,000
  Income Tax refund    5,000
III Total Revenue (I + II)    1,15,000
IV Expenses :      
  Depreciation and amortisation expenses: –     
  Depreciation    15,000
  Goodwill wrote off    5,000
  Other Expenses    
  Total Expenses   20,000
V Profit before exceptional and extraordinary items and tax    95,000
VI Exceptional Items      
  Loss on Sale of Land   10,000
VII Profit before Tax    85,000
VIII Tax Expenses – Current (Provision)   15,000
  Profit for the Period from Continuing Operations    70,000

 

The solution of Question 28 Chapter 5 of +2-B: – 


Cash Flow from Operating Activities
Particulars
Rs
Net Profit as per Statement of Profit and Loss   70,000
Add: Provision for Taxation   15,000
    85,000
Less: Income tax Refund   5,000
Net Profit before Taxation and extraordinary items   80,000
Adjustment for Non-Cash and Non-Operating items:-    
Add: Items to be added    
Goodwill 5,000  
Depreciation 15,000  
Loss on sale of Land 10,000 30,000
    1,10,000
Less: Items to be Deducted    
Profit on sale of machinery   10,000
Operating Profit before tax   1,00,000
Less: Income Tax   10,000
Cash Flow from Operating activities   90,000


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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statement

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