FUND FLOW STATEMENT – EXERCISE

1. Prepare a statement of fund flow and statement of changes in working capital from the
following balance sheets.
Liabilities 2005 (Rs) 2006(Rs) Assets 2005 (Rs) 2006(Rs)
Share capital 5,00,000 5,50,000 Fixed assets 4,95,000 5,50,000
Profit and loss a/c 1,00,000 1,20,000 Stock 49,000 77,000
Sundry creditors 15,000 20,000 Debtors 30,000 10,000
Cash 41,000 53,000
Total 6,15,000 6,90,000 Total 6,15,000 6,90,000

2. ABC limited provided the balance sheet as on 31.03.2006 and 2007 as follows:
Liabilities 2006 (Rs) 2007(Rs) Assets 2006 (Rs) 2007(Rs)
Share capital 9,00,000 10,50,000 Land 4,00,000 3,40,000
Profit and loss a/c 90,000 1,10,000 Premises 3,60,000 4,50,000
Mortgage loan 1,70,000 85,000 Plant 3,50,000 4,20,000
Sundry creditors 12,000 55,000 Stock 25,000 40,000
Bank overdraft 18,000 10,000 Debtors 20,000 16,000
Cash 35,000 44,000
Total 11,90,000 13,10,000 Total 11,90,000 13,10,000
Prepare a statement of fund flow.

3. Prepare a statement of fund flow from the following balance sheet

Liabilities 2007 (Rs) 2008(Rs) Assets 2007 (Rs) 2008(Rs)
Share capital 3,00,000 5,00,000 Land and building 2,00,000 1,80,000
Profit and loss a/c 1,50,000 1,00,000 Plant & Machinery 2,45,000 3,45,000
loan 50,000 - Stock 50,000 65,000
Sundry creditors 30,000 40,000 Debtors 15,000 10,000
Bills payable 10,000 5,000 Cash 30,000 45,000
Total 5,40,000 6,45,000 Total 5,40,000 6,45,000
Consider decrease in land and building as depreciation.

4. Prepare a statement of fund flow from the following balance sheet

Liabilities 2008 (Rs) 2009(Rs) Assets 2008 (Rs) 2009(Rs)
Capital 3,00,000 4,00,000 Land and building 3,00,000 5,00,000
Profit and loss a/c 1,15,000 1,40,000 Plant & Machinery 2,70,000 2,10,000
General reserve 40,000 60,000 Stock 60,000 90,000
Debentures 2,00,000 2,50,000 Debtors 25,000 15,000
Loan 50,000 - Cash 35,000 50,000
Sundry creditors 30,000 43,000 Bills receivable 20,000 15,000
Bills payable 15,000 17,000 Preliminary expenses 40,000 30,000
Total 7,50,000 9,10,000 Total 7,50,000 9,10,000
Adjustments: depreciation for land and building rs.35, 000; plant and machinery rs.20, 000
Profit for sale of a plant is rs.10, 000; drawings of capital for the year rs.25, 000