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  
Particulars31st March, 201831st March, 2017
I.Equity and Liabilities  
 Shareholders Fund :   
Equity Share Capital 35,00030,000
Reserves and Surplus :  
General Reserve 15,00010,000
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 54,00041,000
10% Investments 8,0003,000
 Intangible Assets :   
Goodwill 8,00010,000
Current Assets   
Inventories 23,0004,600
Input CGST 750700
 Input SGST 750700
 Cash and Cash Equivalents :  
Cash and Bank13,00012,000
Total1,07,50072,000

 

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 
Depreciation4,000 
Goodwill amortized2,000 
Discount on debentures written off5008,600
  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
T.S. Grewal’s Analysis of Financial Statement

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