While preparing Cash Flow’ Statement of Sharda Ltd. ‘Depreciation provided on fixed assets’ was added to net profit to calculate cash flow from operating activities. Was the accountant correct in doing so? Give reason. Post category:Accountancy Reading time:1 mins read SOLUTION Yes, accountant is correct.Reason: Depreciation is non-cash item. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ 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 PostState with reason whether the issue of 9% debentures to a vendor for the purchase of machinery of Rs. 50,000 will result in inflow, outflow or no flow’ of cash while preparing Cash Flow Statement. Next PostWhile preparing Cash Flow Statement, the accountant of ‘Rachna Ltd.’, a financing company, included ‘Interest received on loan’ in financing activities. Was he correct in doing so? Give reason. You Might Also Like From the following information, calculate Inventory Turnover Ratio: August 13, 2022 A, B, C and D are partners in a firm sharing profits, in the ratio of 2: 1: 2: 1. On the retirement of C, Goodwill was valued Rs. 1,80,000. A, B and D decide to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill. August 3, 2022 Give the accounting entry for an unrecorded liability in case of reconstitution of partnership firm. September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A, B, C and D are partners in a firm sharing profits, in the ratio of 2: 1: 2: 1. On the retirement of C, Goodwill was valued Rs. 1,80,000. A, B and D decide to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill. August 3, 2022
Give the accounting entry for an unrecorded liability in case of reconstitution of partnership firm. September 26, 2022
