Get Started
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions Y2ZGZHSJ3M
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Study the information given below carefully and answer the following question.

Radhika an alumni of IIM Bangalore initiated her startup Radhika Ltd. in 2020. The profits of Radhika Ltd in the year 2021-2022 after all appropriations was ₹31,25,000. This profit was arrived after taking into consideration the following items:-

S No Particulars Amount ( In ₹)
1 Gain of sale of assets 12,50,000
2 Goodwill written off 7,80,000
3 Transfer to general Reserve 8,75,000
4 Provision for taxation 4,37,500

 

Additional Information:

S No Particulars 31.03.2022 ( In ₹)
 31.03.2021 (In ₹)
1 Prepaid Expenses 7,50,000 5,00,000
2 Inventory 10,50,000 8,20,000
3 Trades Payable 4,50,000 3,50,000
4 Trade Receivable 6,20,000 5,90,000

What is the change in current liabilities?

Options:

Increase by ₹1,00,000

Decrease by ₹1,00,000

Increase by ₹50,000

Decrease by ₹50,000

Correct Answer:

Increase by ₹1,00,000

Explanation:

The correct answer is option 1- Increase by ₹1,00,000.

Increase in Current liabilities (Trade Payables) = 4,50,000 - 3,50,000
                                                                         = 1,00,000

CUET Questions