Question 28 Chapter 5 of +2-B

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 
 ParticularsNote No.Fig. for the Current reporting period
IRevenue from Operations (Net)  1,00,000
IIOther Incomes   
 Profit on Sale of machinery  10,000
 Income Tax refund  5,000
IIITotal Revenue (I + II)  1,15,000
IVExpenses :    
 Depreciation and amortisation expenses: –   
 Depreciation  15,000
 Goodwill wrote off  5,000
 Other Expenses   
 Total Expenses 20,000
VProfit before exceptional and extraordinary items and tax  95,000
VIExceptional Items    
 Loss on Sale of Land 10,000
VIIProfit before Tax  85,000
VIIITax 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  
Goodwill5,000 
Depreciation15,000 
Loss on sale of Land10,00030,000
  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

2 Book 3 min 225x300 - Question 28 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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