please find answer for operating activity only
Regards
Solution:
Note: Debentures were issued on 31st March, 2022 so Interest On Debentures is provided on Opening Balance i.e; Rs.25,000.
Particulars | Amount (Rs.) | |
Cash Flows From Operating Activities | ||
Net Profit as per Statement of Profit & Loss | 50,000 | |
Add: Non-Cash & Non-Operating Expenses | ||
Depreciation on Furniture | 24,000 | |
Patents Written off | 2,000 | |
Interest On Debentures (Rs.25,000 * 12%) | 3,000 | |
Operating Profit Before Working Capital Changes | 79,000 | |
Add: Decrease In Current Assets & Increase In Current Liabilities | ||
Decrease In Inventories | 24,000 | |
Less: Increase In Current Assets & Decrease In Current Liabilities | ||
Increase In Trade Receivables | (10,000) | |
Decrease In Trade Payables | (25,000) | |
Decrease In Outstanding Rent | (25,000) | (60,000) |
Cash Generated From Operations | 43,000 | |
Less: Tax Paid | - | |
Cash Flows From Operating Activities | 43,000 |
Note: Debentures were issued on 31st March, 2022 so Interest On Debentures is provided on Opening Balance i.e; Rs.25,000.