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

Finance ManagementAccountingAcademic Content

Liabilities20042005Assets20042005
Share capital150000180000Land and building8500085000
Profit and loss a/c Loans3500042000Plant and machinery5400070000
Loans200015000stock3050050000
Creditors1700023000Debtors2550045000
Bills payable30001000Bills receivable50002000



Cash70009000

207000261000
207000261000

SOLUTION

The solution is as follows −

                    Working capital= current assets – current liabilities

Changes in working capital

Particulars2004 (Rs.)2005 (Rs.)Incharge (Rs.)Decharge (Rs.)
Current Assets



Stock305005000019500
Debtors255004500019500
Bills Receivable50001000
2000
Cash700090002000
Total (X)68000106000

Current liabilities



Creditors1700023000
6000
Bills payable300010002000
Total (Y)2000024000430008000
X-Y4800082000
35000
Increase in W.C.34000340004300043000

FUNDS FLOW STATEMENT

SourceRs.ApplicationRs.
Issued share capital30000Purchase of plant and machinery16000
Loan13000Increase in working capital34000
Funds from operations7000


50000
50000

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

Increase in working capital = 82000-48000 = 34000

raja
Published on 11-Aug-2020 14:57:31
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