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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 |
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
-1,74,000
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
=31,000
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
=13,000
Less:increase in current assets
decrease in current liablities
Debtors -(6000)
bills payable -(4000)
prepaid exp -(200)
=10,200
less: tax paid -(1,60,000)
=Rs 1,41,800
I HOPE THIS HELPED:)
Add :Provision for tax -1,60,000
Transfer to reserve -14,000
-1,74,000
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
=31,000
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
=13,000
Less:increase in current assets
decrease in current liablities
Debtors -(6000)
bills payable -(4000)
prepaid exp -(200)
=10,200
less: tax paid -(1,60,000)
=Rs 1,41,800
I HOPE THIS HELPED:)