The following is the position of current assets and current liabilities:
| 31st December, 94 | 31st December, 95 | |
| Debtors | Rs. 30,000 | Rs. 24,000 |
| Creditors | Rs. 20,000 | Rs. 30,000 |
| Stock | Rs. 16,000 | Rs. 20,000 |
| Prepaid expenses | Rs. 8,000 | Rs. 12,000 |
Profit made during the year Rs. 5,00,000 after considering the following items:
| Depreciation on plant | Rs. 20,000 |
| Preliminary expenses written off | Rs. 10,000 |
| Transfer to general reserve | Rs. 14,000 |
| Profit on sale of land | Rs. 6,000 |
The cash from operations is:
A. Rs. 5,44,000
B. Rs. 5,38,000
C. Rs. 5,46,000
D. Rs. 5,54,000
Answer: Option B
This Question Belongs to Commerce >> Accounting
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