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
