Question 34 Chapter 5 of +2-B – USHA Publication 12 Class

Question 34 Chapter 5 of +2-B

Question 34 Chapter 5 of +2-B

Indirect Method

34. (Cash Flow from Operating Activities) Calculate cash flow from operating activities from the following :
(i) Profit made during the year 2,50,000 after considering the following items :

 
(a) Depreciation  10,000
(b) Amortisation of Goodwill  5,000
(c) Transfer to General Reserve  7,000
(d) Profit on sale of land  3,000

 

  Closing Balance Opening Balance
Trade Receivable  23,000 23,000
Trade Payable  10,000 15,000
Inventories  8,000 10,000
Prepaid expenses  4,000 6,000
12% Debentures  1,00,000 1,00,000

 

The solution of Question 34 Chapter 5 of +2-B: – 


Cash Flow from Operating Activities
Particulars
Rs
Net Profit as per Statement of Profit & Loss   2,50,000
Adjustment of Non-Operating & Non Cash items    
Add: Depreciation 10,000  
Goodwill wrote off 5,000  
General Reserve 7,000  
Less: Profit on sale of land 3,000  
Add: Interest on Debentures 12,000 22,000
Cash from operating activities before change in working capital   2,81,000
Add: Decrease in Current Assets :    
Inventories 2,000  
Prepaid Expenses 2,000  
Less: Decrease in Current Liabilities    
Trade Payables 5,000 (1,000)
Cash Flew from Operating activities   1,80,000


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

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