How do you treat depreciation in calculating cash flow from operating activities? Post category:Accountancy Reading time:1 mins read SOLUTION Depreciation is added back to net profit while calculating cash flows 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 PostHow do you treat profit or loss on sale of fixed assets for calculating Cash flow from operating activities? Next PostWhy do we add back depreciation to net profit while calculating cash flows from operating activities? (C.B.S.E. 2016, C) You Might Also Like The partnership deed is silent on payment of salary’ to partners. Amita, a partner claimed that since she managed the business, she should get a monthly salary of Rs. 10,000. Is she entitled for the salary? Give reason. September 26, 2022 Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to Pawan of Rs. 5,00,000 on 1st April, 2021. Interest was to be charged @ 10% p.a. The firm took loan of Rs. 2,00,000 from Nirmal on 1st October, 2021. Before giving effect to the above, the firm incurred a loss of Rs. 10,000 for the year ended 31st March, 2022. Determine the amount to be transferred to Profit and Loss Appropriation Account. September 16, 2022 What does Trade Receivables Turnover Ratio indicate? October 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
The partnership deed is silent on payment of salary’ to partners. Amita, a partner claimed that since she managed the business, she should get a monthly salary of Rs. 10,000. Is she entitled for the salary? Give reason. September 26, 2022
Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to Pawan of Rs. 5,00,000 on 1st April, 2021. Interest was to be charged @ 10% p.a. The firm took loan of Rs. 2,00,000 from Nirmal on 1st October, 2021. Before giving effect to the above, the firm incurred a loss of Rs. 10,000 for the year ended 31st March, 2022. Determine the amount to be transferred to Profit and Loss Appropriation Account. September 16, 2022