Numerical - Calculate funds from operations for given net profit

Q.  Given Net profit for the year Rs 2,50,000 transferred to general reserves Rs 40,000 and old machinery bought for Rs 50,000 was sold for Rs 20,000. Calculate funds from operations.
- Published on 11 Sep 15

a. Rs 2,80,000
b. Rs 2,20,000
c. Rs 2,90,000
d. Rs 3,00,000

ANSWER: Rs 2,80,000

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    Discussion

  • ASK   -Posted on 21 Jun 22
    Net profit 250000
    General reserve it's our profit puted in side 40000=290000
    Old machine bought 50000 and sold at 20000= 290000+20000-30000=280000 our answer.
  • Tracy   -Posted on 05 Apr 21
    Net Profit 2,50,000
    Add:
    Transfer General Reserve 40,000
    Loss on sale of Machinery 30,000
    Answer: 3,20,000
  • Hameed kan   -Posted on 21 Mar 21
    Transfer to general reserve is also an inadmissible expense, so Rs. 40,000 transfer to general reserve must also be added. Funds from operation is Rs. 2,80,000 + Rs. 40,000 = Rs. 3,20,000/-
  • Jagan    -Posted on 15 Nov 20
    Net profit. 2,50,000
    Add:loss on sales of
    Machinery. 30,000 Funds from operation. 2,80,000
  • Amira   -Posted on 16 Oct 20
    Great
  • Amira   -Posted on 16 Oct 20
    Great
  • Amit Kumar Ary   -Posted on 14 Aug 17
    Kindly explain

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