Advanced Management

Accounting
 Solution - Statement of working capital
changes
Particulars 2002 (Rs) 2003 (Rs) Increase (Rs) Decrease (Rs)
Current Assets        
Stock 100000 85000   15000
Sundry debtors 150000 160000 10000 
Bills recievables 50000 30000  20000
cash 20000 20000   
Current
Liabilities        
Sundry creditors 110000 130000 20000
Bills Payable 80000 90000  10000
Outstanding Rent 10000 25000  15000
Net decrease in
WC (bal)     70000 
Total     80000 80000
Working Notes - Plant and Machinery
A/c

Particulars Amount (Rs) Particulars Amount (Rs)

To Bal b/d 500000 By deperciation 50000
To P&L Ac(Profit
on sale) 3000 by bank(sale) 8000
To Bank 355000 by balance 800000
  858000   858000
Working Note – Provision For Tax
A/c

Particulars Amount (Rs) Particulars Amount (Rs)

To bank ac(given) 45000 By P&L Ac 35000

To Bal c/d 40000    

    By Bal b/d 50000

  85000   85000
 Working Note – Adjusted P&L A/c
Particulars Amount (Rs) Particulars Amount (Rs)

To depreciation on plant 50000 By bal b/d 100000

By Profit on sale of plant
To General Reserve 20000 and machinery 3000
By Fund From
To Provision for Tax 35000 Operations(bal. fig) 168000
To Interm Divident 6000    
       
       
       
       
To Bal c/d 160000    
  271000   271000
 Fund Flow Statement
(For the year ending 2003)
Sources of Funds: Amount(Rs)
Issue of share capital 200000
sale of plant and machinery 8000

Fund From Operations 168000

Total (A) 376000
Application of Funds: Amount(Rs)
Purchase of Land and building 40000
Purchase of Plant and Machinery 355000
Tax Paid 45000
Interim dividend paid 6000

Total (B) 446000

Decreacee in Working Capital (A-B) 70000
Thank You
Rasesh Seth (08D1015)
Rishav Agrawal (08D1016)
Sidhant Gupta (08D1022)
Suhas Shanker (08D1023)
Uday Chandran (08D1024)
Yugank Modgill (08D1025)