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Commerce · Q2271

Accounting

Graduate and Post Graduate · Commerce · question 2271

Q2271

The following is the position of current assets and current liabilities: 31st December, 94 31st December, 95 Debtors Rs. 30,000 Rs. 24,000 Creditors Rs. 20,000 Rs. 30,000 Stock Rs. 16,000 Rs. 20,000 Prepaid expenses Rs. 8,000 Rs. 12,000 Profit made during the year Rs. 5,00,000 after considering the following items: Depreciation on plant Rs. 20,000 Preliminary expenses written off Rs. 10,000 Transfer to general reserve Rs. 14,000 Profit on sale of land Rs. 6,000 The cash from operations is:

The following is the position of current assets and current liabilities:
31st December, 94 31st December, 95
Debtors Rs. 30,000 Rs. 24,000
Creditors Rs. 20,000 Rs. 30,000
Stock Rs. 16,000 Rs. 20,000
Prepaid expenses Rs. 8,000 Rs. 12,000

Profit made during the year Rs. 5,00,000 after considering the following items:
Depreciation on plant Rs. 20,000
Preliminary expenses written off Rs. 10,000
Transfer to general reserve Rs. 14,000
Profit on sale of land Rs. 6,000

The cash from operations is:
A.
Rs. 5,44,000
B.
Rs. 5,38,000
Answer
C.
Rs. 5,46,000
D.
Rs. 5,54,000

Answer: Option B

Solution

Answer: Option B
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