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

Question 34 Chapter 5 of +2-B
Q-34- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution


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 BalanceOpening Balance
Trade Receivable 23,00023,000
Trade Payable 10,00015,000
Inventories 8,00010,000
Prepaid expenses 4,0006,000
12% Debentures 1,00,0001,00,000



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

Cash Flow from Operating Activities
Net Profit as per Statement of Profit & Loss 2,50,000
Adjustment of Non-Operating & Non Cash items  
Add: Depreciation10,000 
Goodwill wrote off5,000 
General Reserve7,000 
Less: Profit on sale of land3,000 
Add: Interest on Debentures12,00022,000
Cash from operating activities before change in working capital 2,81,000
Add: Decrease in Current Assets :  
Prepaid Expenses2,000 
Less: Decrease in Current Liabilities  
Trade Payables5,000(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

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


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