Prepare a schedule of changes in working capital and statements of funds of flow\\nBalance sheet as on 31st March



Liabilities 2004 2005 Assets 2004 2005
Share capital 150000 180000 Land and building 85000 85000
Profit and loss a/c Loans 35000 42000 Plant and machinery 54000 70000
Loans 2000 15000 stock 30500 50000
Creditors 17000 23000 Debtors 25500 45000
Bills payable 3000 1000 Bills receivable 5000 2000



Cash 7000 9000

207000 261000
207000 261000

SOLUTION

The solution is as follows −

                    Working capital= current assets – current liabilities

Changes in working capital

Particulars 2004 (Rs.) 2005 (Rs.) Incharge (Rs.) Decharge (Rs.)
Current Assets



Stock 30500 50000 19500
Debtors 25500 45000 19500
Bills Receivable 5000 1000
2000
Cash 7000 9000 2000
Total (X) 68000 106000

Current liabilities



Creditors 17000 23000
6000
Bills payable 3000 1000 2000
Total (Y) 20000 24000 43000 8000
X-Y 48000 82000
35000
Increase in W.C. 34000 34000 43000 43000

FUNDS FLOW STATEMENT

Source Rs. Application Rs.
Issued share capital 30000 Purchase of plant and machinery 16000
Loan 13000 Increase in working capital 34000
Funds from operations 7000


50000
50000

Funds from operations = 42000-35000 = 7000 (profit and loss a/c)

Increase in working capital = 82000-48000 = 34000

Updated on: 2020-08-11T11:27:31+05:30

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