Question 28 Chapter 5 of +2-B
Table of Contents
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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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