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Question 32 Chapter 5 of +2-B
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Table of Contents
Indirect Method
32. (Cash Flow from Operating Activities) With the help of the balance sheets and profit and loss account of AB Ltd. calculate the cash flow from operating activities.
Balance Sheet of AB LTD. | ||
Particulars | 31st March, 2018 | 31st March, 2017 |
I. Equity and Liabilities | ||
Shareholders Fund : | ||
Share Capital | 2,93,000 | 2,20,000 |
Reserves and Surplus : | ||
General Reserve | 96,000 | 60,000 |
Non-Current Liabilities : | ||
Long-term Borrowings | ||
Loan | 1,05,000 | 1,20,000 |
Current Liabilities : | ||
Trade Payable | 65,000 | 80,000 |
Total | 5,59,000 | 4,80,000 |
II. Assets | ||
Non-Current Assets : | ||
Tangible Assets | ||
Plant | 3,30,000 | 3,20,000 |
Accumulated depreciation | -38,000 | -30,000 |
Intangible Assets : | ||
Patents | 58,000 | – |
Current Assets | ||
Inventories | 1,20,000 | 1,00,000 |
Trade Receivable | 67,000 | 70,000 |
Cash and Cash Equivalents : | ||
Cash | 22,000 | 20,000 |
Total | 5,59,000 | 4,80,000 |
I | Revenue from Operations (Net) | |
(Sales) | 3,90,000 | |
II | Other Incomes | – |
III | Total Revenue (I + II) | 3,90,000 |
IV | Expenses : | |
Depreciation and amortization expenses : | ||
Depreciation | 8,000 | |
Other Expenses : | ||
Salary | 55,000 | |
Rent | 79,000 | |
Commission | 27,000 | |
Other business expenses | 1,60,000 | |
Total Expenses | 3,29,000 | |
V | Profit before exceptional and extraordinary items and tax | 61,000 |
VI | Exceptional Items | |
VII | Extraordinary items | |
Proposed dividend for the previous year | 25,000 | |
Retained earnings | 36,000 |
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The solution of Question 32 Chapter 5 of +2-B: –
Cash Flow from Operating Activities | ||
Particulars | Rs | |
Net Profit as per Income Statement | 36,000 | |
Add Non-Cash and Non-Operating items : | ||
Depreciation Charged | 8,000 | |
Proposed dividend for the previous year | 25,000 | 33,000 |
Cash from operating activities before change in working capital | 69,000 | |
Add: Decrease in Current Assets : | ||
Debtors | 3,000 | |
72,000 | ||
Less: Increase in Current Assets | ||
Inventories | 20,000 | |
Less: Decrease in Current Liabilities | ||
Creditors | 15,000 | 35,000 |
Cash Flow from Operating activities | 37,000 |
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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