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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:
Particulars 31st March,2007 (Rs) 31st March,2008 (Rs)
Trade receivables    
Debtors 24,000 30,000
Bills Receivables 20,000 17,000
Trade Payables:    
Creditors 20,000 30,000
Bills Payable 16,000 12,000
Prepaid Expenses 400 600
Calculate Cash flow from Operating Activities.
Ans, Cash Flow from Operating Activities=Rs 1,41,800

Net profit as per Profit & loss A/c                                           - Rs 1,00,000
Add :Provision for tax                                   -1,60,000
         Transfer to reserve                                -14,000
Profit before tax                                                                       =2,74,000
Add:Non cash non operating items          
Depreciation                                                   -20,000
preliminary expenses w/off                            -10,000
loss on sale of furniture                                                  -1000
Less:profit on sale of furniture                       -6000
Profit before working capital changes       -2,99,000
Add:decrease in current assets 
        increase in current liablities
Bills receivable                                      -3000
       creditors                                                 -10,000

Less:increase in current assets 
         decrease in current liablities
Debtors                                                -(6000)
         bills payable                                        -(4000)
         prepaid exp                                         -(200)
less: tax paid -(1,60,000)
                                                                                   =Rs 1,41,800



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