The net profit of A Ltd. amounted to ₹40,000. Particulars Amount (₹) Provision of income-tax 33,000 Depreciation 6,500 Preliminary expenses written-off 1,500 Bad debts 500 Loss on sale of furniture 2,500 Discount allowed
CS Executive · Cost and Management Accounting · PYQS · December 2014
The net profit of A Ltd. amounted to ₹40,000. Particulars Amount (₹) Provision of income-tax 33,000 Depreciation 6,500 Preliminary expenses written-off 1,500 Bad debts 500 Loss on sale of furniture 2,500 Discount allowed to customers 1,900 Discount received from trade creditors 1,400 After considering the above information, find out the funds from operation —
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) ₹83,500. Funds from operations = 40,000 + 33,000 + 6,500 + 1,500 + 2,500 = 83,500.
Topics: Financial Statement Analysis
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