A companys reported current profit Rs 70,000 after incorporating the following
Loss on sales of investment Rs 10,000.
Premium on redemption of debentures Rs 1,500.
Depreciation on Machinery and Plant Rs 20,000.
Goodwill and Preliminary Expenses written off Rs 30,000;
Gain from sale of Non-Current Assets Rs 40,000.
The net inflow of funds from the operation would be

Rs. 91,500

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Rs. 80,000

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Rs. 70,000

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Rs.59,500

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Solution

The correct option is C Rs. 91,500
Calculation of net inflows of funds from the operation

Particular

Amount

Net Profit

70000

Loss on sales of investment

10000

Depreciation on Machinery and Plant

20000

Goodwill and Preliminary Expenses written off

30000

Premium on redemption of debentures

1500

Gain from sale of Non-Current Assets

(40000)

The net inflows for the year

91500

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Similar questions

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?

Calculate Return on Investment from the following information :

Net Profit after Tax : Rs. 6,50,000; 12.5% Convertible Debentures : Rs. 8,00,000; Income Tax : 50%; Fixed Assets at cost : Rs. 24,60,000; Depreciation Reserve : Rs. 4,60,000; Current Assets : Rs. 15,00,000; Current Liabilities : Rs. 7,00,000.

Q. When funds from operation are Rs.

42, 000

and the amount of depreciation on plant and machinery is Rs.

5, 000

, what is the amount of net profit?

Prepare Trial Balance from the following information:

Loan given to Ramesh Rs.40,000; Trade Receivables Rs.50,000; Livestock Rs.30,000; Drawings Rs.10,000. Preliminary Expenses Rs.20,000; Investment Rs.50,000; Interest on investment Rs.5,000. Capital Rs.1,25,000; Advance from Mohan Rs.35,000; Bank overdraft Rs.15,000; Provision for doubtful debts Rs.8,000; General Reserve Rs.12,000.

Q. When operating profit Rs.

62, 400

, provision for depreciation Rs.

10, 000

, Provision for taxation Rs.

30, 000

, Refund of tax Rs.

400

, Provision for doubtful debts Rs.

1000

, Office of admin. expenses Rs.

50, 000

then the amount of funds from operation is__________.

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Particular		Amount
Net Profit		70000
Loss on sales of investment	10000
Depreciation on Machinery and Plant	20000
Goodwill and Preliminary Expenses written off	30000
Premium on redemption of debentures	1500
Gain from sale of Non-Current Assets	(40000)
The net inflows for the year		91500