Fund Flow Statement

Worksheet-2 (11th July 2018)

1. The following are the summaries of the balance sheets of the Bharat Vijay Ltd. as on 31‐12‐12 and
31‐12‐13.
Liabilities 2012 2013 Assets 2012 2013
Rs. Rs. Rs. Rs.
Share capital 3,00,000 4,00,000 Buildings 1,20,000 2,50,000
Debentures 2,00,000 2,50,000 Machinery 3,00,000 2,60,000
Profit & Loss A/c 40,000 60,000 Stock 90,000 80,000
Creditors 70,000 80,000 Debtors 1,40,000 2,40,000
Bank overdraft 25,000 25,000 Prepaid
Provision for Taxation 30,000 40,000 expenses 15,000 25,000
6,65,000 8,55,000 6,65,000 8,55,000
The following additional information is obtained:
1. The net profit for the year was Rs. 40,000 after charging depreciation.
2. During the year depreciation charged was Rs. 30,000 on building and Rs. 40,000 on machinery.
3. The company purchased during the year buildings worth Rs. 1, 60,000.
4. Dividend paid during the year amounted to Rs. 20,000.
From the above information, prepare

 Statement of changes in working capital

 Statement of sources and application of funds for the year 2013.

2. The comparative balance sheet of HCL as at 31st December, 2007 and 2008 are as under:

The additional information is as under:

1. During the year 2008 the company sold machinery costing Rs. 75,000 for Rs. 25,000. The
accumulated depreciation on the said machinery was Rs. 40,000.
2. Depreciation written off during the year 2008 was Rs. 90,000.
3. Taxation paid during the year amounted to Rs. 90,000.
From the above information prepare a statement of Sources and Application of Funds for the year
2008.

Liabilities 2007 2008 Assets 2007 2008

Rs. Rs. Rs. Rs.
Share capital 10,00,00 15,00,00 Building at cost 7,50,000 11,50,00
0 0 0
Share premium Machinery 8,75,000
‐ 50,000 11,25,00
P & L A/c (Less depreciation)
0
2,00,000 4,25,000
5% debentures Investments 1,00,000
5,00,000 3,80,000
Creditors Stock 2,25,000
1,00,000
3,00,000 5,20,000
Prov. for Taxation debtors 75,000
2,45,000
1,00,000 25,000
Proposed dividend Bank balance 1,25,000
90,000
50,000 50,000
21,50,00
2,40,000
21,50,00 29,50,00 0
0 0 29,50,00
 0

3. Following are Balance Sheet of a Limited Co. as on 31st Dec.2013 and 2014.
Balance Sheet
Liabilities 2013 2014 Assets 2013 2014
Share Capital 61,000 74,000 Plant 45,000 43,000
Reserves 13,000 15,500 Building 50,950 48,000
Creditors 28,000 24,000 Stock 20,500 18,800
Overdraft 18,000   Debtors 20,000 16,200
Provision for Taxation 8,000 8,500 Cash 150 180
Profit & Loss a/c 8,600 8,800 Cash at Bank   2,100
      Good Will   2,520
1,36,60 1,30,80 1,36,60 1,30,80
  0 0   0 0

Taking into account the following information, calculate (i) Statement of Changes in Working Capital
(ii) Sources and Application of Funds.
1) Interim Dividend was paid Rs.2,000.
2) Dividend proposed for Rs. 4,000.
3) Provision of Rs.9,000 was made for Income Tax.
4) Rs. 2000 was written off as depreciation on Plant and Rs.2,950 on Building.
5) Profit on Sale of Fixed Investment Rs. 1,500.

4. The following are the summarised balance sheets of M/s .Krishna Ltd. as on 31 st December 2016
and 2017. 

Liabilities & Capital 2016 (In Rs. ) 2017 (In Rs.)

10% Preference Shares 1,00,000 1,10,000
Equity Shares 2,20,000 2,50,000
Share Premium 20,000 26,000
Profit & Loss a/c 1,04,000 1,34,000
12% Debentures 70,000 64,000
Creditors 38,000 46,000
Bills payable 5,000 4,000
Provision for Tax 10,000 12,000
Dividend (Proposed) 7,000 8,000
  5,74,000 6,54,000
     
Assets 2016 (In Rs. ) 2017 (In Rs.)
Machinery 2,00,000 2,30,000
Buildings 1,50,000 1,76,000
Land 18,000 18,000
Cash 42,000 32,000
Debtors 38,000 38,000
Bills receivable 42,000 62,000
Stock 84,000 98,000
  5,74,000 6,54,000

You are required to prepare: 

1. A statement showing changes in the working capital
2. A statement of sources and application of funds.