Question 29 Chapter 5 of +2-B – USHA Publication 12 Class

Question 29 Chapter 5 of +2-B

Question 29 Chapter 5 of +2-B

Indirect Method

29. (Cash Flow from Operating Activities) From the following information, calculate ca from operating activities :

 
Profit and Loss on 1st April 2017 (Credit) 50,000
 Profit and Loss on 31st March 2018 (Credit) 1,60,000
 Prepaid expenses on 1st April 2017 4,000
 Outstanding expenses on 1st April 2017 10,000
 Outstanding expenses on 31st March 2018 13,000
 Depreciation on fixed assets 25,000
 Amortisation of goodwill 16,000
 Decrease in Bills Payable 9,400
 Decrease in Debtors  45,600
Loss on sale of machine  40,000
Provision for taxation  30,000
Transfer to General Reserve  60,000

 

The solution of Question 29 Chapter 5 of +2-B: – 


Cash Flow from Operating Activities
Particulars
Rs
Net Profit as per Statement of Profit and Loss   1,10,000
Add: Provision for Taxation   30,000
Net Profit as per Statement of Profit and Loss before Tax   1,40,000
Add: Non-Cash & Non-Operating Incomes    
Depreciation 25,000  
Goodwill wrote off 16,000  
Loss on sale of Machine 40,000  
Transfer to General Reserve 60,000 1,41,000
Operating Profit before the change in Working capital   2,81,000
Add: Decrease in Current Assets    
Debtors 45,600  
Prepaid Expenses 4,000  
Add: Increase in Current Liabilities    
Outstanding Expenses 3,000 52,600
    3,33,600
Less: Decrease in Current Liabilities    
Bill Payable   9,400
Cash generated from Operating Activities   3,24,200
Less: Income Tax   30,000
Cash Flow from Operating activities   2,94,200


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 29 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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