Items

Assets
Plant and Machinery
Land and Buildings
Stock
Sundry Debtors
Cash
Liabilities
and
Capital
Share Capital
Profit and Loss A/c
General Reserve
Sundry Creditors
Bills Payable
Outstanding Expenses

Dec. 31, 2009

Rs.

Dec. 31, 2010

Rs.

5,00,000
80,000.00
1,00,000
1,50,000
20,000.00
8,50,000

8,00,000
1,20,000
75,000
1,60,000
20,000
11,75,000

5,00,000
1,00,000
50,000.00
1,53,000
40,000.00
7,000.00
8,50,000

7,00,000
1,60,000
70,000
1,90,000
50,000
5,000
11,75,000

Additional Information
(i)
Depreciation of Rs. 50,000 has been charged on Plant and
Machinery during the year 2010.
(ii)
A piece of machinery was sold for Rs. 8,000 during the year
2010. It had cost Rs. 12,000, depreciation of Rs. 7,000 had been
provided on it.

Plant

To balance b/d
To Cash Outflow
To profit

500000 By balance c/d

355,000 By Cash( Inflow)
3,000 By Depriciation
858000

800,000
8,000
50,000
858,000

Land and Building a/c

To balance b/d
To Cash Outflow

80,000 By balance c/d

40,000
120,000

120000
120,000

700000 By balance c/d

By Cash Inflow
700000

500000
200000
700000

By Balance b/d

50,000
20,000
70,000

Share Capital a/c

To balance c/d

General Reserve

To Balance c/d

70,000 By loss
70,000

Schedule of Changes in Working Capital

Particulars
Current Asset
Stock
Debtors
Cash
Current Liabilities
Sundry Creditors
Bills Paybale
Outstanding expenses
Decrease in working Capital

Previous year

Current Year Increase in Working Capital

100,000
150,000
20,000

75,000
160,000
20,000

153,000
40,000
7,000

190,000
50,000
5,000

0
10,000
0
10,000

0
2,000
12,000

al

Decrease in Working Capital

25,000
0
0
25,000
37,000
10,000
0
72,000
60,000

Adjusted P & L a/c

Particulars
To Depr for Plant
To General reserve
To profit and loss a/c

Amount
50,000
20,000
160,000
230,000

Particulars
By Balance c/d
By profit by plant
By Operating Profit

Amount
100,000
3000
127000
230,000

285,000

127,000
158,000

Fund Flow statement

Sources of funds

By Plant
By Issuance of Shares
By operating Profit

Amount Application of fund

Amount

8,000 Purchase of plant

200,000 Land and Building
127000 Decrease in workig capital

355,000
40,000
-60,000

335,000

335,000