Question 32 Chapter 5 of +2-B – USHA Publication 12 Class

Question 32 Chapter 5 of +2-B

Question 32 Chapter 5 of +2-B

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

 

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   2,000
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

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 32 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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