Question 32 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
32.from the following information, calculate net cash flow from operating activities and investing activities:
| Particulars | 31-3-2021 | 31-3-2022 |
| Profit and loss A/c | 1,00,000 | 4,00,000 |
| Provision for tax | 30,000 | 30,000 |
| Trade payable | 40,000 | 1,50,000 |
| Current assets (inventories & trade receivable | 4,60,000 | 5,20,000 |
| Fixed assets | 7,50,000 | 9,70,000 |
| Accumulated depreciation | 1,80,000 | 2,40,000 |
Additional information: plant costing 1,45,000 was sold at a loss of 40,000. Depreciation amounting to 1,30,000 was provided during the current year. Tax paid during the year was 30,00.
The solution of Question 32 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
Calculation of net cash flow from operating
Activities and investing activities
| Particulars | ₹ | |
| Cashflow from Op activities | ||
| net profit before tax | 3,30,000 | |
| Add: depreciation | 1,30,000 | |
| Loss on sale of machinery | 40,000 | |
| Op. profit before working capital charges | 5,00,000 | |
| Changes in C.A and C.L | ||
| Increase in CA | (60,000) | |
| Increase in CL | (1,10,000) | 50,000 |
| Net cash flow from Op. Act before tax | 5,50,000 | |
| Less: tax paid | 30,000 | |
| Net cash flow from Op. Activities. After tax | 5,20,000 | |
| Cashflow from investing activities | ||
| Sale of machinery | 35,000 | |
| Purchase of fixed assets | (3,65,000) | |
| Cash used in investing activities | (3,30,000) |
Working notes:(1)
| Calculation of net profit before taX | |
| Closing balance of P & LA/c | 4,00,000 |
| Less : Opening balance of P& LA/c | (1,00,000) |
| Add: tax paid | 30,000 |
| Net profit before tax | 3,30,000 |
Working notes: (2)
Fixed assets account
| Particulars | ₹ | Particulars | ₹ |
| To balance c/d | 7,50,000 | By assets disposal A/c (B. fig) | 1,45,000 |
| To bank A/c (purchases) | 3,65,000 | by balance c/d | 9,70,000 |
| 11,15,000 | 11,15,000 |
Working note: (3)
Provision for depreciation A/C
| Particulars | ₹ | Particulars | ₹ |
| to assets disposal A/c (B. fig) | 70,000 | By balance b/d | 1,80,000 |
| To Bal. c/d | 2,40,000 | By P & LA/c (dep.) | 1,30,000 |
| 3,10,000 | 3,10,000 |
Working note: (4)
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Asset’s Disposal Account
| Particulars | ₹ | Particulars | ₹ |
| To fixed assets A/c | 145,000 | By provision for dep. A/c | 70,000 |
| By bank A/c (sale B.F.) | 35,000 | ||
| By P & L (loss) | 40,000 | ||
| 1,45,000 | 1,45,000 |
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Unimax 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 (Change in Profit sharing ratio among Existing Partners )
- 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)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Company Accounts (Issue of Debentures)
- Chapter No. 3 – Company Accounts (Redemption of Debentures)
- Chapter No. 4 – Financial Statements of a Company
- Chapter No. 5 – Financial Statement Analysis
- Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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