Trade Payables for 31.3.2017 is Rs. 70,000 and for 31.3.2018 is Rs. 36,000. What is the treatment in the cash flow statement for 31.3.2018?

Increase in Trade Payables of 34,000 and will be added to Net Profit

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Decrease in Trade Payables of 34,000 and will be added to Net Profit

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Decrease in Trade Payables of 34,000 and will be reduced from Net Profit

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Increase in Trade Payables of 34,000 and will be reduced from Net Profit

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Solution

The correct option is C
Decrease in Trade Payables of 34,000 and will be reduced from Net Profit

The treatment in the cash flow statement for 31.3.2018 :
Decrease in trade payables = 70,000 - 36,000 = Rs. 34,000 and decrease in trade payables will be reduced from net profit

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Similar questions

Trade receivables for 31.3.2018 is Rs. 50,000 and for 31.3.2017 is Rs.62,000. What is the treatment in the cash flow statement for 31.3.2018 ?

The net profit for the year 31.3.2018 is Rs. 1,35,000 Trade Payables and Trade Receivables for 31.3.2018 is Rs. 70,000 and Rs. 31,000 respectively and Trade Payables and Trade Receivables for 31.3.2017 is Rs. 50,000 and Rs. 21,000. What is the cash flow from operating activities?

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.

Opening balance of cash account is Rs. 2,00,000. Expenditure payable is Rs. 70,000. Amount of cash sales is Rs. 80,000 & Amount of credit sales is Rs. 1,00,000. What is the closing cash balance?

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Sale of a fixed asset (book value Rs. 15,000) at a loss of Rs. 5,000
(ii) Cash received from Trade Receivables Rs. 9,000 and allowed discount Rs. 1,000.
(iii) Cash paid to Trade Payables.
(iv) Shares issued for Cash.
(v) Buy- back of Equity Shares.

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Trade Payables for 31.3.2017 is Rs. 70,000 and for 31.3.2018 is Rs. 36,000. What is the treatment in the cash flow statement for 31.3.2018?

The correct option is C Decrease in Trade Payables of 34,000 and will be reduced from Net Profit The treatment in the cash flow statement for 31.3.2018 : Decrease in trade payables = 70,000 - 36,000 = Rs. 34,000 and decrease in trade payables will be reduced from net profit

The correct option is C
Decrease in Trade Payables of 34,000 and will be reduced from Net Profit

The treatment in the cash flow statement for 31.3.2018 :
Decrease in trade payables = 70,000 - 36,000 = Rs. 34,000 and decrease in trade payables will be reduced from net profit