Question 31 Chapter 5 of +2-B
Table of Contents
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 | 25,000 | 21,000 |
Current Liabilities : | ||
Sundry Creditors | 12,500 | 8,500 |
Provisions Provision for depreciation on Machinery | 13,000 | 9,000 |
Total | 1,07,500 | 72,000 |
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
- 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

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