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Question
Read the following information and answer the given question:
Krishika alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:
S. No. | Particulars | Amount (₹) |
1. | Gain on sale of fixed tangible assets | 12,50,000 |
2. | Goodwill written off | 7,80,000 |
3. | Transfer to General Reserve | 8,75,000 |
4. | Provision for taxation | 4,37,500 |
Additional information:
Particulars | 31.3.2020 (₹) | 31.3.2019 (₹) |
Prepaid Expenses | 7,50,000 | 5,00,000 |
Inventory | 10,50,000 | 8,20,000 |
Trade Payable | 4,50,000 | 3,50,000 |
Trade Receivables | 6,20,000 | 5,90,000 |
Cash from operating activities before tax will be ₹ ______.
Options
35,57,500
40,67,500
37,87,500
35,67,300
MCQ
Fill in the Blanks
Solution
Cash from operating activities before tax will be ₹ 35,57,500.
Explanation:
Cash from Operating Activities before tax = Operating profit before Working Capital changes - increase in Current Assets + Increase in Current liabilities
= ₹ 39,67,500 + ₹ 2,50,000 + ₹ 2,30,000 - ₹ 30,000 + ₹ 1,00,000
= ₹ 35,57,500
shaalaa.com
Distribution of Profit Among Partners
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