How will you treat decrease in prepaid expenses in the cash How from operating activities? Post category:Accountancy Reading time:1 mins read SOLUTION Decrease in prepaid expenses will be added to operating profit while calculating cash flow from operating activities. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy do we add back preliminary expenses to net profit while calculating cash flows from operating activities? Next PostWhat adjustments are required for decrease or increase in Trade Payables/bills payable while calculating ‘Cash flow from operating activities’? You Might Also Like Three Chartered Accountants A, B and C form a partnership, profits being shared in the ratio of 3 : 2 : 1 subject to the following: (a) C’s share of profit guaranteed to be not less than Rs. 15,000 p.a. (b) B gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying on profession alone, which on an average works out at Rs. 25,000. The profit for the first year of the partnership are Rs. 75,000. The gross fee earned by B for the firm is Rs. 16,000. You are required to show Profit and Loss Appropriation Account after giving effect to the above. July 22, 2022 Give any two transactions which result into inflow of cash. October 6, 2022 Name the asset that is not transferred to the debit side of Realisation Account, but brings certain amount of cash against its disposal at the time of dissolution of the firm. September 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Three Chartered Accountants A, B and C form a partnership, profits being shared in the ratio of 3 : 2 : 1 subject to the following: (a) C’s share of profit guaranteed to be not less than Rs. 15,000 p.a. (b) B gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying on profession alone, which on an average works out at Rs. 25,000. The profit for the first year of the partnership are Rs. 75,000. The gross fee earned by B for the firm is Rs. 16,000. You are required to show Profit and Loss Appropriation Account after giving effect to the above. July 22, 2022
Name the asset that is not transferred to the debit side of Realisation Account, but brings certain amount of cash against its disposal at the time of dissolution of the firm. September 27, 2022