# 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

#### 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
Transfer General Reserve 40,000
Loss on sale of Machinery 30,000
• 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
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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