Fund Flow statement

Content
• Schedule of changes in working Capital
• Fund Flow Statement
• Fund from Operations
• WC= CA-CL
• stock
• 2021 2022 2,000
• 10,000 12,000
• Creditors
• 5,000 6,000 1,000

• WC= CA- CL
• 2,000- 500= 1500
• 2000- 1000= 1000
• 2500- 1000=1500
• 1500-1000=500
• Discount to debtors-is a operating expense as it is a part general
business
• Provision on discount to creditors-debtors-is a operating expense as it
is a part general business
 Schedule of changes in Working Capital
Particulars 2014 2015 Increase Decrease
Current Assets
Stock 20,000 30,000 10,000
Debtors 30,000 40,000 10,000
Cash 5000 10,000 5000
Bank 8000 2000 6000
B/R 30,000 20,000 10,000
Total Current Assets (A) 93000 1,02,000

Current Liabilities
Creditors 30,000 40,000 10,000
B/P 28,000 18,000 10,000
Outstanding Exp. 3000 5000 2000
Total Current Liabilities (B) 61,000 63,000
Working Capital (A-B) 32,000 39,000
Increase in working Capital 7000 7,000
39,000 39,000 35000 35,000
 Fund from Operations
Particulars Amount Amount
Net Profit 52,000
Add- Non operating Expenses 40,000
Depreciation
Loss on sale of building 10,000
Advertisement Suspense account 5,000
Discount on issue of shares 500

Goodwill 12,000 67,500

1,19,500
Less- Non operating Income
Gain on Sale of plant 20,000 (20,000)

FUND FROM OPERATION 99,500

 Schedule
Particulars
of
2010
Changes
2011
in Working
Increase
Capital
Decrease
Current Asset
Stock 240000 210000 30,000
Debtors 210000 455000 245000
Bank 144000 197000 53000
Total Current Assets (A) 594000 862000

Current Liabilities
Creditors 168000 134000 34000
Total Current Liabilities (B) 168000 134000
W.C ( A-B) 4,26,000 7,28,000
Increase in working Capital 3,02,000 3,02,000
7,28,000 7,28,000 332000 332000
 Adjusted P&L A/C
Particulars Amt Particulars Amt
To depreciation on F.A. 70,000 By bal b/d 56,000
To provision for taxation 10,000 By gain on sale of investment 500
To dividend 40,000 By gain on sale of F.A. 2,000
To general reserve 10,000 By FFO (bal. fig) 139,500
To balc/d 68,000

1,98,000 1,98,00
 Fund Flow Statement
Sources Amt Application Amt
Sale of investment 8,500 Dividend Paid 40,000
Sale of fixed asset 12,000 Taxes paid 75,000
Loan 2,70,000 Purchase of investment 18000
FFO 139500 Increase in W.C 3,02,000
• Working Notes-
Investment A/C

Particulars Amt Particulars Amt

To Bal b/d 50,000 By bank (sale) 8,500
To profit on sale of investment 500
To bank (bal. fig) 18,000

By bal c/d 60,000

68,500 68,500

Bank A/c………Dr 8,500

To Investment 8,000
To gain on sale of investment 500

Investment A/C ………Dr 18,000

To bank 18,000
 Provision for Taxation A/C

Particulars Amt Particulars Amt

To Tax paid (bal. fig.) 75,000 By bal b/d 75,000
By P&l A/C 10,000

To balc/d 10000
85,000 85,000
 Fixed Asset A/c
Particulars Amt Particulars Amt
To bal b/d 4,00,000 By sales 12,000
To profit on sale of investment 2,000 By depreciation (bal. fig.) 70,000

By balc/d 3,20,000
4,02,000 4,02,000