Question

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?

• A. Rs. 1,00,000
• B. Rs. 1,20,000
• C. Rs. 1,40,000
• D. Rs. 1,60,000

Answer 1

The correct option is A Rs. 1,00,000

Particulars	Amount
Net profit during the year	1,00,000
Add:- Loss on sale of machinery	30,000
Add:- Depreciation	20,000
Less:- Profit on sale of furniture	(10,000)
Fund from operations	1,40,000

Fund From Operation = Net Income + Depreciation + Loss on Sale of Property - Gains on Sale of Property