FUND FLOW STATEMENT

1. Find out the changes in working capital from the Balance Sheets given below: Particulars 31.12.2010 31.12.2011 Capital and Liabilities: Share capital 300000 375000 Trade creditors 106000 70000 Profit and Loss A/c 14000 31000 420000 476000 Assets: Machinery 70000 100000 Stock in trade 121000 136000 Debtors 181000 170000 Cash 48000 70000 420000 476000 2. From the following Balance Sheets of X Co. Ltd., you are required to prepare a Schedule of Changes in Working Capital and Statement of Flow of Funds;
Particulars Assets: Land and Building Plant Stock Cash at bank Debtors Capital and Liabilities: Capital P & L Appropriation A/c Creditors Mortgage 31.12.2010 50000 24000 9000 4000 16500 80000 14500 9000 31.12.2011 50000 34000 7000 9000 19500 85000 24500 5000 5000

3. From the following Balance Sheets of ABC Ltd., on 31.12.2010 and 31.12.2011, you are required to prepare Schedule of changes in working capital and Funds Flow Statement.
Liabilities Share capital General reserve Profit and Loss A/c Creditors Bills payable Provision for taxation Provision for doubtful debts 2010 200000 28000 32000 16000 2400 32000 800 2011 200000 36000 26000 10800 1600 36000 1200 Assets Goodwill Buildings Plant Investments Stock Bills receivable Debtors Cash & Bank balance 311200 311600 2010 24000 80000 74000 20000 60000 4000 36000 13200 311200 2011 24000 72000 72000 22000 46800 6400 38000 30400 311600

Additional information: a. Depreciation provided on plant was `8000 and on building `8000 b. Provision for taxation made during the year `38000 c. Interim dividend paid during the year `16000

4. From the following Balance Sheets, prepare a sources and application of funds statement:
Liabilities Share capital Retained earnings Premium on shares Accumulated depreciation Debentures Bills Payable 2010 200000 160000 80000 60000 37800 537800 2011 210000 300000 5000 100000 Assets Fixed assets Inventory Bills Receivable Prepaid expenses 2010 350000 100000 43000 4000 15800 25000 537800 2011 475000 95000 50000 5000 10200 20000 655200

Cash 40200 Commission shares 655200

Additional information: a) Depreciation for the year `20000 b) Income tax paid was `40000 c) Interim dividend paid during the year was `20000 5. Following are the balance sheets of NMN Ltd., for the year 2010 & 2011
Liabilities Share capital P&L a/c Debentures Creditors Provision for doubtful debts Provision for depreciation on: Buildings Machinery Assets Buildings Machinery Debtors Stock Bank Preliminary 30000 34000 expenses 30000 32000 1035000 1127000 2010 500000 150000 200000 120000 5000 2011 500000 252000 200000 105000 4000 2010 200000 350000 147000 250000 83000 5000 2011 250000 360000 138000 274000 101000 4000

1035000

1127000

Additional information: a. Net profit for the year 2011 was `252000 b. During the year a part of machinery costing `7000 accumulated depreciation thereon being `1000 was sold for `5000 c. Dividend paid `50000 Prepare a Fund Flow Statement. 6. From the given below balance sheets of KFC Co., prepare a statement of sources and uses of funds:
Liabilities Share capital P&L a/c Debentures Outstanding expenses Creditors Provision for doubtful debts Accumulated depreciation on: Plant & Machinery Buildings 2010 200000 23500 40000 3500 33000 2000 2011 200000 52000 35000 4500 40000 3000 Assets Buildings Plant & Machinery Investments Debtors Cash Prepaid expenses Stock 2010 75000 35000 50000 80000 43000 2000 32000 2011 90000 50000 30000 90000 57000 3000 40000

3000 12000 317000

7500 18000 360000

317000

360000

Additional information: a. Dividend of `26500 was paid during the year b. Investments worth `20000 were sold for `25000 c. Plant &Machinery costing `5000, on which `1000 depreciation has been accumulated, was sold for `6000 7. From the following balance sheets of A & Co., you are required to show any increase or decrease in working capital and sources and applications thereof.
Liabilities Share capital General reserves P&L a/c 8% Debentures Bills payable Provision for taxation Creditors 31.12.10 240000 18000 58500 ---24000 29400 100500 470400 31.12.11 360000 27000 62400 78000 36000 32700 109200 705300 Assets Land & Buildings Machinery Furniture Stock Debtors Cash in hand 31.12.10 166200 106800 7200 66300 109500 144000 470400 31.12.11 339600 153900 4500 78000 117300 12000 705300

Additional information: a. Depreciation written off during the year: On machinery `38400, on furniture `1200 b. A piece of land having a book value of `50000 was sold for `75000 c. Income tax of `15000 was paid during the year d. During the year interim dividend of `30000 was paid 8. The summarized Balance Sheets of XYZ Ltd., as at 31.12.2010 and 31.12.2011 are given: Balance Sheet of XYZ as on 31st December
Liabilities Share capital General reserve Profit & Loss A/c Creditors Provision for bad debts Provision for taxation Mortgage loan 31.12.2010 31.12.2011 Assets 450000 450000 Fixed assets 300000 310000 Investments 56000 68000 Stock 164000 129000 Debtors 4000 5000 Bank 75000 10000 270000 1049000 1242000 31.12.2010 400000 50000 240000 210000 149000 31.12.2011 320000 60000 210000 455000 197000

1049000

1242000

a. b. c. d.

Additional information: Investments costing `8000 were sold during the year 2011 for `8500 Provision for tax made during the year was `9000 During the year part of the fixed assets costing `10000 was sold for `12000 and the profit was included in the Profit and Loss A/c Dividend paid during the year amounted to `40000

9. From the following Balance Sheet of X Ltd., as on 31.12.2010 and 31.12.2011, you are required to prepare a Fund Flow Statement.
Liabilities Share capital General reserve Profit & Loss A/c Bank loan (long term) Creditors Provision for taxation 2010 400000 80000 64000 320000 300000 60000 1224000 2011 500000 140000 78000 80000 260000 80000 1138000 Assets Land & Buildings Machinery Stock Debtors Cash at bank 2010 400000 360000 200000 160000 104000 1224000 2011 480000 260000 252000 128000 18000 1138000

a. b.

c. d. e.

Additional information: During the year ended 31.12.2011 dividend of `84000 was paid Assets of another company were purchased for a consideration of `100000 payable by the issue of shares. The assets include Lad and Buildings of `50000 and stock of `50000 Depreciation written off on machinery is `24000 and on land & buildings is `45000 Income tax paid during the year was `70000 Additions to buildings were for `75000

10. From the following Balance Sheets of Alpha Ltd., make out Statement of changes in the working capital and Funds Flow Statement:
Liabilities Equity Share Capital 8% Redeemable Preference Share Capital Capital Reserve General Reserve P & L A/c Proposed Dividend Sundry Creditors Bills Payable Liability for expenses Provision for taxation 2010 300000 150000 40000 30000 42000 25000 20000 30000 40000 677000 2011 Assets 400000 Goodwill 100000 Land & Building 20000 50000 48000 50000 47000 16000 36000 50000 817000 Plant Investments Sundry Debtor Stock Bills Receivable Cash in hand Cash at bank Preliminary expenses 2010 100000 200000 80000 20000 140000 77000 20000 15000 10000 15000 677000 2011 80000 170000 200000 30000 170000 109000 30000 10000 8000 10000 817000

a. b. c. d.

Notes: A piece of land has been sold out in 2011 and the profit on sale had been carried to Capital Reserve A machine has been sold for `10000. The written down value of the machine was `12000. Depreciation of `10000 is charged to plant A/c in 2011 The investments are trade investments. `3000 by way of dividend received including `1000 from preacquisition of profit which has been credited to Investment Account. An interim dividend of `20000 has been paid in 2011.