Asynchronous Work:

Calculate "Funds from operation " from the following information given below on 31st march 2016.

(1) Net Profit for the year ended on 31st March 2016 is Rs.650000
(2) Gain on the sale of building Rs.35500
(3) Good will appears in the books as 180000 out of that 10% has been written off during the year
(4) Old machinery worth Rs.8000 has been sold for Rs.6500 during the year
(5) Rs.125000 have been transferred to Gneral Reserve Fund
(6) Depreciation has been provided during the year on machinery at 20% whose cost was Rs.650000

Ans: Funds from operation is Rs.889000

Particulars Amount Amount
Net Profit for the year 650,000
Add: Non-operating and Non-Fund
which are debited to P&L a/c
Preliminary expenses w/o 18000
Depreciation 130000
Loss on sale of machinery 1500
Transferred to General Reserve Fund 125000 274500
Less: Non-operating & Non-Fund
which are credited which are credited
to P&L a/c
Gain on sale of Building 35500 -35500

Funds from Operations 889,000