Question 30 Chapter 5 of +2-B – USHA Publication 12 Class

Question 30 Chapter 5 of +2-B
Q-30- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution


Question 30 Chapter 5 of +2-B


Indirect Method

30. (Cash Flow from Operating Activities) X Ltd. made a profit of 1,00,000 of considering the following items :
1. Depreciation of fixed assets 20,000.
2. Loss on Sale of furniture 1,000
3. Provision for Taxation 21,60,000
4. Transfer to general reserve 14,000
5. Profit, on Sale of machinery 6,000

Additional Information :

Trade Receivable 24,00030,000
 Trade Payable20,00030,000
  Bills Receivable 20,00017,000
Bill Payable16,00012,000
 Prepaid Expenses 400600



The solution of Question 30 Chapter 5 of +2-B: – 

Cash Flow from Operating Activities
Net Profit as per Statement of Profit and Loss 1,00,000
Adjustment of Non-Cash & Non-Operating Items  
Add: Depreciation20,000 
Loss on sale of Furniture1,000 
Transfer to General Reserve14,000 
Provision for Taxation1,60,0001,95,000
Less: Profit on sale of machinery 6,000
Operating Profit before the change in Working capital 2,89,000
Add: Increase in Current Liabilities  
Trade Payable10,000 
Add: Decrease in Current Assets  
Bill Receivable3,00013,000
Less: Decrease in Current Liabilities  
Bill Payable4,000 
Less: Increase in Current Assets  
Trade receivable6,000 
Prepaid Expenses20010,200
Cash generated from Operating Activities 3,12,200
Less: Income Tax 1,60,000
Cash Flow from Operating activities 1,31,800

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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