how is 'provision for bad debt' treated in cash flow satement?
prepare a cash flow statement
PARTICULARS
NO
AMOUNT
Equities and liabilities
Share holders fund
Share capital
400000
700000
Reserves and surplus
1
(50000)
(320000)
Noncurrent liability
Long term borrowings
2
200000
Current liability
Trade payables
110000
150000
Outstanding expense
10000
20000
Assets
Noncurrent asset
300000
500000
Non current investment
140000
Current asset
inventory
50000
100000
Trade receivables
170000
Cash and cash equivalent
40000
Note 1 reserves and surplus
P&L balance (50000) (320000)
Note 2 long term borrowings
9Şb 200000 400000
Additional info
Included in fixed asset was a piece of machinery costing rs 70000 on which depreciation 40000 and it was sold for 30000 during the year 140000 dep charged on fixed asset
Q14. X Ltd. made a profit of Rs1,00,000 after considering the following items:
(i) Depreciation on Fixed Assets Rs20,000
(ii) Writing off Preliminary Expenses Rs10,000
(iii) Loss on Sale of Furniture Rs1,000.
(iv) Provision for Taxation Rs1,60,000
(v) Transfer to General Reserve Rs 14,000
(vi) Profit on Sale of Machinery Rs6,000
The following additional information is available to you:
Ans, Cash Flow from Operating Activities=Rs 1,41,800
how is 'provision for bad debt' treated in cash flow satement?
prepare a cash flow statement
PARTICULARS
NO
AMOUNT
AMOUNT
Equities and liabilities
Share holders fund
Share capital
400000
700000
Reserves and surplus
1
(50000)
(320000)
Noncurrent liability
Long term borrowings
2
200000
400000
Current liability
Trade payables
110000
150000
Outstanding expense
10000
20000
Assets
Noncurrent asset
300000
500000
Non current investment
200000
140000
Current asset
inventory
50000
100000
Trade receivables
100000
170000
Cash and cash equivalent
20000
40000
Note 1 reserves and surplus
P&L balance (50000) (320000)
Note 2 long term borrowings
9Şb 200000 400000
Additional info
Included in fixed asset was a piece of machinery costing rs 70000 on which depreciation 40000 and it was sold for 30000 during the year 140000 dep charged on fixed asset