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

Question 32 Chapter 5 of +2-B
Q-32- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution


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.
Particulars31st March, 201831st March, 2017
I. Equity and Liabilities  
 Shareholders Fund :   
Share Capital 2,93,0002,20,000
Reserves and Surplus :  
General Reserve 96,00060,000
Non-Current Liabilities :   
Long-term Borrowings   
Current Liabilities :   
Trade Payable 65,00080,000
Total 5,59,0004,80,000
II. Assets   
Non-Current Assets :   
Tangible Assets   
Plant 3,30,0003,20,000
Accumulated depreciation -38,000-30,000
 Intangible Assets :   
Patents 58,000
Current Assets   
Inventories 1,20,0001,00,000
Trade Receivable67,00070,000
 Cash and Cash Equivalents :  


IRevenue from Operations (Net)  
 (Sales) 3,90,000
IIOther Incomes 
IIITotal Revenue (I + II) 3,90,000
IVExpenses :  
 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
VProfit before exceptional and extraordinary items and tax 61,000
VIExceptional Items  
VIIExtraordinary items  
 Proposed dividend for the previous year25,000
 Retained earnings 36,000



The solution of Question 32 Chapter 5 of +2-B: – 

Cash Flow from Operating Activities
Net Profit as per Income Statement 36,000
Add Non-Cash and Non-Operating items :  
Depreciation Charged8,000 
Proposed dividend for the previous year25,00033,000
Cash from operating activities before change in working capital 69,000
Add: Decrease in Current Assets :  
Debtors 3,000
Less: Increase in Current Assets  
Less: Decrease in Current Liabilities  
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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statement



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