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Question

Trade Receivable for 31.3.2018 is Rs.150,000 and for 31.3.2017 is Rs.122,000. What is the treatment in the cash flow statement for 31.3.2018


A

Increase in Trade Receivable of 28000 and will be added to Net Profit

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B

Decrease in Trade Receivable of 28000 and will be added to Net Profit

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C

Decrease in Trade Receivable of 28000 and will be reduced from Net Profit

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D

Increase in Trade Receivable of 28000 and will be reduced from Net Profit

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Solution

The correct option is A

Increase in Trade Receivable of 28000 and will be added to Net Profit


The treatment in the cash flow statement for 31.3.2018 :
Increase in the trade receivables = 1,50,000 - 1,22,000 = Rs.28,000
and increase in the trade receivables will be reduced from the net profit


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