Fund Flow Statement 2

8/11/2019 Fund Flow Statement 2

1/13

ROHIT D. AKOLKARS

NARMADAMANAGEMENT AND COMMERCE CLASSES

(+91-9763261738)

VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

Que. No. (28) Balance sheet:

Liabilities 2002 2003 Assets 2002 2003Share capital 150000 170000 Fixed assets 255000 310000

General

Reserve

75000 100000 Investment 20000 35000

Premium on

shares

5000 10000 Current assets 120000 187500

Debentures 50000 90000 Discount ondebentures

2500 ---

P & L A/c. 30000 35000

DepreciationReserve

45000 65000

Provision for

doubtful debts

5000 7500

UnpaidExpenses

500 1000

CurrentLiabilities

37000 54000

397500 532500 397500 532500

Adjustments:

1)

Dividend @ 15% was paid for 2002.2) An asset costing Rs.20000 (Depreciation Provided Rs. 8500) was sold for 12500.

Prepare statement of changes in working capital and sources and application of fund and Fund

Flow Statement.


2/13

ROHIT D. AKOLKARS


(+91-9763261738)


Que. No. (29). From the following Balance Sheet of Anil & Co. Ltd. You are required to show any

increase or decrease in working capital and sources and applications thereof:

Balance Sheet

Liabilities As at 31-12-06 As at 31-12-07 Assets As at 31-12-06 As at 31-12-07

Equity sharecapital

240000 360000 Land &Building

166200 3396000

Share premium 24000 36000 Machinery 106800 153900

General

Reserve

18000 27000 Furniture 7200 4500

P&L A/c 58500 62400 Stock 66300 78000

8% Debentures ----- 78000 Debtors 109500 117300

Provision for

taxation

29400 32700 Bank 14400 12000

Creditors 100500 109200

470400 705300 470400 705300

Depreciation written off during the year:

On Machinery 38400

On Furniture 1200

Que .No. ( 30).

From the following balance sheet of S.M. Industries, Prepare a Fund Flow statement showing your

working clearly:

Balance Sheet

Liabilities L.Y. C.Y. Assets L.Y. C.Y.

Share Capital 60000 65000 Goodwill 30000 25000

P & L A/c. 34000 26000 Plant &Machinery

60000 50000

Current

Liabilities

12000 3000 Current Assets 16000 19000

106000 94000 106000 94000

Additional Information:

a) Depreciation of Rs. 20000 on plant and machinery was charged to P&L a/c.

b) Dividend of Rs. 12000 were paid during the year.


3/13

ROHIT D. AKOLKARS


(+91-9763261738)


Que .No. (31)

From the particulars, prepare Fund Flow Statement:

Particulars Jan. 1 (Rs.) Dec. 31 (Rs.)

Cash 2000 1800Debtors 17500 19200

Stock 12500 11000

Land 10000 15000

Building 25000 27500

Machinery 40000 43000

107000 117500

Creditors 18000 20500

Bank Loan (Long term) 15000 22500

Capital 74000 74500

107000 117500

During the year Drawings by the proprietorfor personal use amounted to Rs.13000.

Provision for depreciation on machinery stood at Rs.13500 on Jan 1, and at Rs.18000 on Dec.31.

Que.No ( 32)

The following are the summarized Balance sheet of X ltd., on 31stDec., 2006 and 2007.

Liabilities 2006 2007 Assets 2006 2007

Share capital 600000 800000 Plant &Machinery (at

cost)

400000 645000

Debenture 200000 300000 Land &Building (at

cost)

300000 400000

P & L A/c 125000 250000 Stock 300000 350000

Creditors 115000 90000 Bank 20000 40000

Provision for

bad & doubtfuldebts

6000 3000 Preliminary

Exp.

7000 6000

Provision for

Depreciation:

On Land &

Building

On Plant &

Machinery

20000

30000

24000

35000

Debtors 69000 61000

1096000 1502000 1096000 1502000


4/13

ROHIT D. AKOLKARS


(+91-9763261738)



a) During the year a part of machinery costing Rs. 70,000 (accumulated depreciation thereon

Rs.2000) was sold for Rs. 6,000.

b) Dividends of Rs.50000 were paid during the year.

You are required to ascertain:

a) Changes in working capital for 2007.

b)

Fund flow statement.

Que.No. ( 33)

Following is the Balance sheet of a company.


Equity Capital 50000 53000 Cash 20000 25000

Long term debt 14000 13000 Account

Receivable

24000 27000

Retained

Earnings

28000 37000 Inventories 31000 32000

Accumulated

Depreciation

21000 25000 Other Current

Assets

8000 7000

Sundry

Creditors

20000 21000 Fixed Assets 50000 58000

133000 149000 133000 149000


a)

Fixed Assets costing R.s 12,000 were purchased during 2007 for cash.

b)

Fixed Assets (original cost Rs.4,000 accumulated depreciation Rs. 1500) were sold at book value.

c)

Depreciation for the year 2007 amounted to Rs.5,500 which has been debited to profit and loss

A/c.

d) During 2007, dividend paid Rs. 3,000.

You are required to prepare a statement of source and application of funds and fund flow statement.


5/13

ROHIT D. AKOLKARS


(+91-9763261738)


Que. No. ( 34)

From the following financial statement of XYZ ltd. Make out a statement of sources and application of

funds and schedule of changes in working capital:

Assets 2007 2006 Liabilities 2007 2006

Cash 50000 40000 Creditors 180000 125000

Debtors 30000 15000 5% Debentures 100000 200000

Stocks 100000 80000 Equity 200000 100000

Investments(short

term)

120000 50000 P&L A/c 20000 -----

Fixed assets 200000 200000

P&L A/c ----- 40000

500000 425000 500000 425000

Provision for depreciation on the last day of 2006 was Rs. 50,000. The same on the last day

of 2007 was Rs. 60,000. During the year 2007 a machine costing Rs.30000 (Depreciation Rs. 10,000)

was sold for Rs. 16,000.

Que. No. (35)The following is the summarized Balance Sheet of a Limited Company as at 31st

December, 2006 and 31stDecember 2007.

Balance Sheet


SundryCreditors

39500 41135 Cash At Bank 2500 2700

Bills Payable 33780 11525 SundryDebtors

85175 76625

Bank Overdraft 59510 ----- SundryAdvances

2315 735

Provision ForTaxation.

40000 50000 Stock 111040 97370

Reserves 50000 50000 Land andBuildings

148500 144250

P & L A/c 39690 41220 Plant andMachinery

112950 116200

Share Capital 200000 260000 Goodwill ----- 2000

462480 453880 462480 453880


6/13

ROHIT D. AKOLKARS


(+91-9763261738)


The following Additional Information is obtained from the general ledger:-

(1)

During the year ended 31stDecember, 2007, an Interim dividend of Rs. 26,000 was paid.

(2)

The assets of another company were purchased for Rs. 60000 payable in fully paid shares of the

company. These assets consisted of stock Rs.21640, Machinery Rs. 18360 and goodwill Rs.

20000. In addition sundry purchases of plant were made totaling Rs. 5650.

(3) Income tax paid during the year amounted to Rs. 25000.

(4) The net profit for the year before tax was Rs.62530.

You are required to prepare a statement showing the sources and applications of funds for the year 2007

and a schedule setting out changes in working capital.

Que. No. (36)The following is the Balance Sheet of a company as on 31stDecember 2006 and 2007.

Liabilities 2006 2007 Assets 2006 2007Sundry

Creditors

103000 96000 Cash at Bank 50000 40000

Outstanding

Expenses

13000 22000 Debtors 77000 73000

5% Debentures 90000 70000 Short Term

Investment.

110000 84000

DepreciationFund

40000 44000 PrepaidExpenses

1000 2000

Reserve for

contingencies.

60000 50000 Stock 92000 106000

P & L A/c 16000 23000 Building 100000 100000

Share capital 180000 180000 Machinery 72000 80000502000 485000 502000 485000

The following information concerning the transactions is available:--

(1) 10% dividend was paid in cash.

(2)New machinery for Rs. 20000 was purchased but old machinery costing Rs.12000 was sold for

Rs. 4000, accumulated depreciation was Rs. 6000.

(3)

5% Debentures amounting to Rs. 20000 were redeemed by purchase from open market @ Rs.96

for debenture of Rs.100.

(4)

Rs. 10000 was debited to Contingency Reserve for settlement of previous tax liability.(5) Rs. 26000 investments were sold at Book Value.

Prepare a Fund Flow Statement.


7/13

ROHIT D. AKOLKARS


(+91-9763261738)


Que. No. (37)Following figures appears in the books of TATA Engg. Ltd., for the years 31stMarch

1997 and 31stMarch 1998:-

Balance Sheet

Liabilities 31-03-1998 31-03-1997 Assets 31-03-1998 31-03-1997

Share Capital 400000 360000 Fixed Assets

Less:Depreciation

520000

(140000)

480000

(108000)

GeneralReserve

60000 110000 380000 3720000

Creditors 195350 133650 Investment 50000 100000

P & L A/c 33450 20450 Stock 90500 55600

ProposedDividend.

15000 28800 Debtors 167800 118300

Tax Provision 32000 50000 Cash and Bank 47500 49800

OpeningExpenses. ----- 7200

735800 702900 735800 702900


(1)

Profit for the current year (Depreciation Rs. 40000, write off of Opening Exp. Rs.7200, Provision

for Tax Rs. 32000. These provisions were made) Rs.38000.

(2) During the year company sold out the machinery costing Rs. 9000 for Rs.3000, on which the

Depreciation Reserve was Rs. 8000.(3)

Investment costing Rs. 50000 was not in use (worthless) is transferred to General Reserve.

(4)

Midterm dividend of Rs.10000 declared during the year and Rs. 15000 as final dividend is

proposed.

Prepare Fund Flow Statement.

Que. No. (38)From the Balance Sheet given below prepare Fund Flow Statement.

Balance Sheet


Equity ShareCapital

300000 350000 Fixed Assets 510000 620000

9% PreferenceShare Capital

200000 100000 Investments 30000 80000

Debenture 100000 270000 Current Assets 240000 375000

P & L A/c 110000 270000 Discount on 10000 5000


8/13

ROHIT D. AKOLKARS


(+91-9763261738)


Debenture

Provision for

Bad &Doubtful Debt.

10000 15000

CurrentLiability

70000 145000

790000 108000 790000 108000

Adjustments:-

(1) Preference share were redeemable at premium of 5% during the year 1991.

(2) Dividend at 15% on Equity share for the year 1990 and preference share dividend for the year

1991 were paid in the year 1991.

(3) The provision for Depreciation was Rs. 150000 and Rs. 190000 for the year 1990 and 1991

respectively.

(4)

A machine costing Rs. 70000, depreciation charged Rs. 30000 was disposed off for Rs. 25000.

Prepare Fund Flow Statement (Show your working notes clearly.

Que. No. (39)From the following balance as at 31stDecember 2000 and 2001, prepare a statement

showing changes in working capital and Fund Flow Statement.


Share Capital 200000 300000 Building at cost 150000 230000

SharePremium

------ 10000

CapitalReserve (profiton

Redemption ofDebentures)

------ 1000 Plant andMachinery at cost

Less:Depreciation

260000

(85000)

320000

(95000)

Balance b/f 40000 40000 175000 225000

Profit for theyear

------ 45000 Shares inSubsidiaryCompany.

20000 20000

5%Debentures

100000 75000 Stock 45000 49000

SundryCreditors

60000 104000 Sundry Debtors 15000 18000

TaxationAccount

20000 5000 Bank 25000 48000

ProposedDividends.

10000 10000

430000 590000 430000 590000


9/13

ROHIT D. AKOLKARS


(+91-9763261738)



10/13

ROHIT D. AKOLKARS


(+91-9763261738)



11/13

ROHIT D. AKOLKARS


(+91-9763261738)



12/13

ROHIT D. AKOLKARS


(+91-9763261738)



13/13

ROHIT D. AKOLKARS


(+91-9763261738)


Documents

Fund Flow Statement 2