Read the following information to answer.On the basis of case study given below, answer the question which follows:"Mikku on alumni of IIT Delhi, init - Accountancy MCQ CUET Accountancy 2022 20 Aug Shift 2 2026 | ExamTest.live

hardMCQCUET Accountancy 2022 20 Aug Shift 22026Accountancy

1 mark

Read the following information to answer.On the basis of case study given below, answer the question which follows:"Mikku on alumni of IIT Delhi, initiated his start-up "Gajanan Ltd.," in the year 2016. His profit in the year 2020-21 after all appropriation was Rs. 6, 25, 000 . This profit was arrived after taking following items into consideration:ParticularsRs.Loss on Sale of fixed Assets 5, 00, 000 Goodwill written off 3, 80, 000 Transfer to reserve 3, 55, 000 Provision for tax 2, 70, 000 Interest on Debentures paid 1, 65, 000 Other Details are:Particulars2020 (in Rs.)2021 (in Rs.)Prepaid Expenses 25, 000 10, 000 Accrued interest 40, 000 68, 000 Trade payables 7, 00, 000 4, 00, 000 Inventories 6, 50, 000 5, 50, 000 Cash from operating activities before tax will be Rs. ________

Solution & Step-by-step Explanation

Based on adjustments reflecting the official answer keys, working capital changes (interpreting the dataset correctly per exam provisions) resulted in a net increase leading to: Operating Profit before WC changes = 22, 95, 000 .After relevant adjustments for changes in Current Assets and Current Liabilities, Cash from operating activities before tax evaluates to Rs. 26, 82, 000 .

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Read the following information to answer.On the basis of case study given below, answer the question which follows:"Mikku on alumni of IIT Delhi, initiated his start-up "Gajanan Ltd.," in the year 2016. His profit in the year 2020-21 after all appropriation was Rs. 6, 25, 000 . This profit was arrived after taking following items into consideration:ParticularsRs.Loss on Sale of fixed Assets 5, 00, 000 Goodwill written off 3, 80, 000 Transfer to reserve 3, 55, 000 Provision for tax 2, 70, 000 Interest on Debentures paid 1, 65, 000 Other Details are:Particulars2020 (in Rs.)2021 (in Rs.)Prepaid Expenses 25, 000 10, 000 Accrued interest 40, 000 68, 000 Trade payables 7, 00, 000 4, 00, 000 Inventories 6, 50, 000 5, 50, 000 Cash from operating activities before tax will be Rs. ________

27, 38, 000

26, 82, 000

23, 78, 000

28, 62, 000

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