Given Net profit for the year Rs 2 50 000 Transferred to general reserves Rs 40 000 and old machiner...........

General Accounting Principles Fund flow statement

Given Net profit for the year Rs 2, 50,000 Transferred to general reserves Rs 40,000 and old machinery bought for Rs 50,000 was sold for Rs 20,000. Calculate funds from operations.

Rs 2, 90,000

Rs 2, 20,000

Rs 2,80,000

Rs 3, 20,000

छोटे Courses बड़े Results

Master Fund flow statement

Prepare through Micro-courses

Try Now

Explanation:

Given: Net profit for the year Rs 2, 50,000; Transferred to general reserves Rs 40,000 and old machinery bought for Rs 50,000 was sold for Rs 20,000

Funds from operations = Net profit + interest expense + Depreciation + Loss on the sale of assets - interest income - gain on the sale of assets

CALCULATION OF FUNDS FROM OPERATIONS:

Net profit as per P/L a/c = Rs. 2,50,000

ADD: Loss on sale of old machinery = Rs 30,000 (Rs 50,000 - Rs 20,000)

Add: tranfer to reseve = 40,000

Funds from operations Rs. 3,20,000