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Question
Prepare a cash flow statement showing cash generated from the operation of Solex Ltd. for the year ended 31.3.2025.
Net profit for the year ended 31.3.2025 was ₹ 1,25,000 after considering the following items:
| Depreciation on plant | ₹ 17,500 |
| Transfer to general reserve | ₹ 13,500 |
| Provision for tax | ₹ 15,000 |
| Provision for doubtful debt | ₹ 1,600 |
Note: All Debtors are good.
Position of Current assets & current liabilities:
| Particulars | 31.3.2025 (₹) |
31.3.2024 (₹) |
| Trade receivable | 27,000 | 28,000 |
| Trade payable | 12,000 | 17,000 |
| Current investment | 24,000 | 18,000 |
| Marketable securities | 9,000 | 7,000 |
Ledger
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Solution
| Cash flow statement For the year ended 31.03.2025 |
||
| Particulars | Amount (₹) |
Amount (₹) |
| Cash flow from operating activities: | ||
| Net profit before tax | 1,55,100 | |
| Adjustment for non-cash & non-operating items: | ||
| Depreciation plant | 17,500 | |
| Net operating profit before working capital change | 1,72,600 | |
| Adjustment for Working capital: | ||
| Trade receivable | 1,000 | |
| Trade payable | (5,000) | |
| Current investment | (6,000) | |
| Cash generated from operation | 1,62,600 | |
shaalaa.com
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