PROBLEM:08

NATIONAL INDUSTRIES LTD

STATEMENT OF CHANGE IN WORKING CAPITAL
DR CR



FUND FLOW STATEMENT
DR CR
SOURCES AMOUNT APPLICATION AMOUNT
SALE OF PLANT
MACHINE
6000 PURCHASE OF PLANT
&MACHINE
94600
SALE OF LAND &
BUILDING
25000 LOAN PAID 1000
ISSUE OF SHARE 40000 DIVIDEND PAID 25000
TRADING PROFIT 58800 INCREASE IN WORKING
CAPITAL
9200
129800 129800




PARTICULARS 1974 1975 INCREASE DECREASE
CURENT ASSET
BOND 45600 48800 3200
DEBENTURE 9800 16000 6200
STOCK 23200
MARKETABLE SECURITIES 32200 10000 22200
129600 140000
CURENT LIABILITY
SUNDRY CREDITORS 42400 45200 2800
LIABILITY FOR EXPENSE 2600 1000 1000
45000 46200 9200
IN CREASE IN WORKING
CAPITAL
9200 93800 34200 34200
93800 93800







RESERVE & SURPLUS ACCOUNT
DR CR
PARTICULAR AMOUNT PARTICULAR AMOUNT
TRADE
INVESTMENT
7200 BY OPENING
BALANCE
120600
PROVISION 16400 PROFIT ON SALE
OF PLANT &
MACHINERY
4000
INTANGIBLE
ASSEET
4800 PROFIT ON SALE
OF BUILDING
15000
PROVISION FOR
TAXES
12400 TRADING PROFIT 69800
DIVIDEND PAID 25000
CLOSSING
BALANCE
143600
209400 209400



TRADE INVESTMENT A/C

DR CR
PARTICULAR AMOUNT PARTICULAR AMOUNT
OPENING BALANCE 42300 RESERVE & SURPLUS 7200
BY CLOSING BALANCE 35100
42300 42300












PLANT &MACHINERY A/C
DR CR
PARTICULAR AMOUNT PARTICULAR AMOUNT
BALANCE B/D 183400 BY CASH SALE 6000
SURPLUS 4000 MACHINE
DEPRECIATION
8000
CASH PURCHASE 94600 BY CLOSING
BALANCE
266000
282000 282000



LAND AND BUILDING A/C
DR CR
PARTICULAR AMOUNT PARTICULAR AMOUNT
TO OPENING BALANCE 150000 CASH 25000
RESERVE & SURPLUS A/C 15000 BY CLOSING BALANCE 140000
165000 165000



INTENGIBLE ASSET
DR CR
PARTICULAR AMOUNT PARTICULAR AMOUNT
TO OPENING
BALANCE
16900 RESERVE &
SURPLUS
4800
CLOSING
BALANCE
12100
16900 16900









PAID UP CAPITAL A/C
DR CR
PARTICULAR AMOUNT PARTICULAR A
MOUNT
OPENING BALANCE 3000000
CLOSING
BALANCE
340000 CASH (ISSUE OF PAID UP
CAPITAL)
40000
340000 340000




MORTGAGE LOAN A/C
DR CR
PARTICULAR AMOUNT PARTICULAR AMOUNT
CASH (LOAN PAID) 1000 OPENING
BALANCE
20000
CLOSING
BALANCE
19000
20000 20000



PROVISION FOR TAXATION A/C
DR CR
PARTICULAR AMOUNT PARTICULAR AMOUNT
OPENING BALANCE 11000
CLOSING BALANCE 12400 RESERVE & SURPLUS A/C 1400
12400 12400

















PROVISION FOR DEPRECITION A/C
DR CR
























PARTICULAR AMOUNT PARTICULAR AMOUNT
TO PLANT &
MACHINERY
8000 OPENING
BALANCE

CLOSING
BALANCE
34000 RESERVE &
SURPLUS A/C

42000 42000