Question

13. Calculate Cash Flow from Operating Activities from the following:
(i) Profit for the year is 7,00,000 after considering the following items:
Particulars
₹
Depreciation on Fixed Assets
Goodwill Amortised
Gain (Profit) on Sale of Land
Appropriation of Profit towards General Reserve
(ii) Following is the position of Current Assets and Current Liabilities:
40,000
20,000
90,000
60,000
Particulars
Closing
Opening
Balances (3) Balances (*)
50,000 75,000
75,000 60,000
10,000 18,000
Trade Payables
Trade Receivables
Prepaid Expenses​

Answer 1

Solution :

Let us assume that the required fraction is in the form of x / y .

It is mentioned that -

• It becomes 1/3 when 1 is subtracted from the numerator

• It becomes 1/4 when 8 is added to its denominator.

We will use this to form two seperate two variable linear equations and solve them to get the value of x and y .

( x - 1 ) / y = 1/3

=> y = 3x - 3

=> 3x - y = 3 ___(1)

• x/ ( y + 8) = 1/4

=> 4x = y + 8 ____(2)

From (1)

=> y = 3x - 3

From (2)

y = 4x - 8

So,

3x - 3 = 4x - 8

=> x = 5

y = 12 .

Thus, the fraction becomes 5/12.

This is the required answer.

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