You visited us 4 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard XII

Mathematics

Contra-Positive

A building st...

Question

A building standing in the books at Rs. $40, 000$ was sold for Rs. $52, 000$ . The profit on sale of building was transferred to profit & loss account thus increasing the net profit to Rs. $1, 80, 000$ . What is the fund from operation?

Rs.

1, 80, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs.

1, 92, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs.

1, 68, 000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs.

1, 82, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Rs. $1, 68, 000$
Net Profit 1,80,000
Less : Profit on Sale (12,000)
(Non-trading Profit)
_______
Fund From operation 1,68,000
_

Working Notes:
Calculation of Profit on Sale of Building:
Sales Value 52,000
Less: Book Value (40,000)

Profit on Sale 12,000
__

Suggest Corrections

Similar questions

Q. A Machinery valued in the books at

R s . 80, 000

was sold

R s . 1, 00, 000

. The Net profit is

R s . 80, 000

. What is the amount of funds from operation?

Q. Anand Ltd., arrived at a net income of Rs 5,00,000 for the year ended March 31, 2017. Depreciation for the year was Rs 2,00,000. There was a profit of Rs 50,000 on assets sold which was transferred to Statement of profit and Loss account. Trade Receivables increased during the year Rs 40,000 and Trade Payables also increased by Rs 60,000. Compute the cash flow operating activities by the indirect approach.

Q. The balance in books of X, a sole proprietor were:
Opening Stock Rs.

17, 000

, Purchases Rs.

52, 000

Wages Rs.

46, 500

Fuel Rs.

15, 000

Sales Rs.

1, 45, 000

and Closing stock Rs.

25, 000

whose Net Realizable value was Rs.

28, 000

. Find the Gross profit.

Q. Given: Net profit during the year Rs. 1,00,000; Depreciation Rs. 20,000; Profit on sale of furniture Rs. 10,000; Loss on sale of machinery Rs. 30,000. What is the amount of funds from operations?

L and M were partners in a firm sharing profit in the ratio of 2 :3. On 28-2-2016 the firm was dissolved. After transferring assets (other than cash) and outsiders' liabilities to realisation account you are given the following information :

(a) A creditor for Rs. 1,40,000 accepted building valued at Rs 1,80,000 and paid to the firm Rs. 40,000.

(b) A second creditor for Rs. 30,000 accepted machinery valued at Rs. 28,000 in full settlement of his claim.

(c) A third creditor amounting to Rs. 70,000 accepted Rs. 30,000 in cash and investments of the book value of Rs. 45,000 in full settlement of his claim.

(d) Loss on realisation was Rs 4,000.

Pass necessary Journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque.

Join BYJU'S Learning Program

A building standing in the books at Rs. 40,000 was sold for Rs. 52,000. The profit on sale of building was transferred to profit & loss account thus increasing the net profit to Rs. 1,80,000. What is the fund from operation?

The correct option is C Rs. 1,68,000Net Profit 1,80,000Less : Profit on Sale (12,000)(Non-trading Profit) _____________Fund From operation 1,68,000 _____________Working Notes:Calculation of Profit on Sale of Building:Sales Value 52,000Less: Book Value (40,000) ________Profit on Sale 12,000 ________

A building standing in the books at Rs. $40, 000$ was sold for Rs. $52, 000$ . The profit on sale of building was transferred to profit & loss account thus increasing the net profit to Rs. $1, 80, 000$ . What is the fund from operation?

The correct option is C Rs. $1, 68, 000$
Net Profit 1,80,000
Less : Profit on Sale (12,000)
(Non-trading Profit)
_______
Fund From operation 1,68,000
_

Working Notes:
Calculation of Profit on Sale of Building:
Sales Value 52,000
Less: Book Value (40,000)

Profit on Sale 12,000
__