[DK Goel] Q. 6 Cash Flow Statement Solutions Class 12 CBSE (2026-27)
Solution of question number 6 of Cash Flow Statement chapter 7 of DK Goel Class 12 CBSE (2026-27).
On March 31st, 2024 Ramesh and Co. indicated a profit of ₹ 1,25,000 after considering the following:
| Depreciation on buildings | ₹ 25,000 |
| Depreciation on plant and machinery | ₹ 45,000 |
| Amortization of goodwill | ₹ 20,000 |
| Gain on sale of machinery | ₹ 10,000 |
Additional Information:
| 31.3.2024 (₹) | 31.3.2023 (₹) | |
| Trade Receivables | 45,000 | 35,000 |
| Inventory on Hand | 69,000 | 75,000 |
| Cash in Hand | 30,000 | 18,000 |
| Trade Payables | 32,000 | 30,000 |
| Expenses payable | 5,000 | 10,000 |
| Bank Overdraft | 35,000 | 60,000 |
Ascertain the net cash(cash flow) from operating activities.
[Ans. Cash from Operating activities ₹ 1,98,000.]
Solution:-
Hints:
(i) There will be no entry of Cash in Hand.
(2) Decrease in Bank overdraft will be recorded under Financing Activities’.
