Question 31 Chapter 5 of +2-B – USHA Publication 12 Class

Question 31 Chapter 5 of +2-B

Question 31 Chapter 5 of +2-B

Indirect Method

 31. (Cash Flow from Operating Activities) From the following Balance Sheets of ABC Ltd. find out cash from operating activity only :

Balance Sheet    
Particulars 31st March, 2018 31st March, 2017
I.Equity and Liabilities    
 Shareholders Fund :     
Equity Share Capital  35,000 30,000
Reserves and Surplus :    
General Reserve  15,000 10,000
Balance in Statement of Profit and Loss  7,000 -6,000
Discount on Debentures    -500
Non-Current Liabilities :     
10% Debentures     
Current Liabilities :     
Trade Payable     
Provisions Provision for depreciation on Machinery     
Total     
II. Assets     
Non-Current Assets :     
Tangible Assets     
Machinery  54,000 41,000
10% Investments  8,000 3,000
 Intangible Assets :     
Goodwill  8,000 10,000
Current Assets     
Inventories  23,000 4,600
Input CGST  750 700
 Input SGST  750 700
 Cash and Cash Equivalents :    
Cash and Bank 13,000 12,000
Total 1,07,500 72,000

 

The solution of Question 31 Chapter 5 of +2-B: – 


Cash Flow from Operating Activities
Particulars
Rs
Net Profit as per Statement of Profit and Loss   13,000
Add: Transfer to General Reserve   5,000
    18,000
Add Non-Cash and Non-Operating items :    
Interest on Debentures @10% 2,100  
Depreciation 4,000  
Goodwill amortized 2,000  
Discount on debentures written off 500 8,600
    26,600
Less: Non-Operating incomes :    
Interest on Investment   300
Operating Profit before the change in working capital   26,300
Add: Increase in liabilities    
Creditors   4,000
    30,300
Less: Increase in current Assets    
Inventories (18,400)  
Input CGST (50)  
Input SGST (50) 18,500
Cash Flow from Operating activities   11,800


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

2 Book 3 min 225x300 - Question 31 Chapter 5 of +2-B  - USHA Publication 12 Class
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