Calculation of W C by Net Assets Method

Current assets: 1. Raw Material( for months consumption) 2. Work in Process (for months consumption) Raw Material Labour (1/2) Factory Overheads (1/2) 3. F.G ( for months sales) 4. Debtors or receivables (formonths sales) 5. Prepaid Expenses or payments in advance (if any) 6. Balance of cash and other CA (if any) (A) Total

Rs. xx xx xx xx xx xx xx xx

Current Liabilities

Rs.
xx xx

1. 2.

Creditors (formonths purchase of RM) Lag in payment of expenses (Outstanding expensesmonths)

(B) Total (A)-(B) Net Working Capital Add: Provision for contingencies Total Working Capital Required

xx

xx xx xx