CA.

Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org

For Eenquiries
Call or whatsapp: 8800215448
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Email: ca.naresh.vc@gmail.com

AoA
Website: academyofaccounts.org

Fund Flow Statement

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Q-1: From the following Balance Sheets of Sudershan Ltd. prepare Fund Flow Statement. (c) Plant costing Rs.20,000 (Accumulated Depreciation Rs.5,000) was sold during the year for
CA. Naresh Aggarwal’s Rs.12,000.
Liabilities 2018 2019 Assets 2018 2019
ACADEMY
Share Capital
of ACCOUNTS
1,80,000 2,00,000 Machinery (Gross) 2,10,000 2,80,000
[Funds from operations: Rs.84,000; Increase in working capital: Rs.30,000
Funds flow statement: Rs.1,46,000; Dep. on Building: 10,000 Purchase of Plant: Rs.51,000]
Accounting
Depreciation Reserve• Costing Taxation
60,000 • 62,000 • Financial Management
Debtors 96,000 83,000
Profit
West& Loss
PatelA/c 45,000
Nagar, New Delhi. 72,000 Stock
Ph:8800215448. 60,000 40,000
Website: www.academyofaccounts.org Q-4: From the following Balance Sheets of XYZ Ltd. prepare Fund Flow Statement.
Debentures 60,000 54,000 Expense on issue
Liabilities 2018 2019 Assets 2018 2019
Creditors 35,000 32,000 of Shares 3,000 2,000
Bank Balance 11,000 15,000 Share Capital 2,00,000 2,50,000 Goodwill 10,000 2,000
Debentures 1,00,000 80,000 Land and Building 2,00,000 2,70,000
3,80,000 4,20,000 3,80,000 4,20,000
Reserve & Surplus 50,000 70,000 Plant & Machinery 1,00,000 1,40,000
[Funds from operations: Rs.30,000; Decrease in working capital: Rs.26,000 Creditors 25,000 60,000 Debtors 40,000 60,000
Total of Funds flow statement: Rs.76,000] Bills Payable 20,000 80,000 Stock 55,000 72,000
Provision for Tax 40,000 40,000 Marketable Securities 15,000 18,000
Q-2: From the following Balance Sheets of Maharaja Ltd. prepare Fund Flow Statement. Cash at Bank 10,000 15,000
Preliminary Expenses 5,000 3,000
Liabilities 2018 2019 Assets 2018 2019
4,35,000 5,80,000 4,35,000 5,80,000

AoA
Share Capital 3,00,000 4,00,000 Goodwill 1,15,000 90,000
Debentures 1,50,000 1,00,000 Machinery 2,00,000 1,70,000 Additional Information:
General Reserve 40,000 70,000 Land & Building 1,60,000 2,00,000 (a) Land & Building purchased during the year was of Rs.1,00,000.
Profit & Loss A/c 72,000 98,000 Bills Receivable 20,000 30,000 (b) Depreciation Charged on Plant during the year was Rs.20,000
Creditors 55,000 83,000 Stock 1,57,000 3,09,000 (c) Plant costing Rs. 30,000 (Accumulated Depreciation Rs.18,000) was sold during the year
Bills Payable 20,000 16,000 Cash 10,000 18,000 for Rs.10,000.
Provision for Tax 60,000 80,000 Preliminary Expenses 35,000 30,000 [Funds from operations: Rs.1,22,000; Decrease in working capital: Rs.50,000
Total of Funds flow statement: Rs.2,32,000; Depreciation on Land and Building: Rs.30,000
6,97,000 8,47,000 6,97,000 8,47,000
Purchase of Plant: Rs.72,000]
[Funds from operations: Rs.1,96,000; Increase in working capital: Rs.1,46,000
Total of Funds flow statement: Rs.2,96,000] Q-5: From the following Balance Sheets of Sudershan Ltd. prepare Fund Flow Statement.
Liabilities 2018 2019 Assets 2018 2019
Q-3: From the following Balance Sheets of Sudershan Ltd. prepare Fund Flow Statement.
Equity Share Capital 45,000 65,000 Fixed Assets 40,700 83,000
Liabilities 2018 2019 Assets 2018 2019
General Reserve 10,000 7,500 Stock 16,000 13,000
Equity Share Capital 1,50,000 2,00,000 Goodwill 36,000 20,000 Debentures 12,000 20,000 Debtors 24,000 21,000
12% Pref. Share Capital 75,000 50,000 Land & Building 40,000 60,000 Outstanding Expenses 10,000 15,000 Bank 2,000 2,500
General Reserve 20,000 35,000 Plant 80,000 1,00,000 Trade Creditors 6,700 11,000 Prepaid Expenses 800 500
Profit and Loss A/c 15,000 24,000 Debtors 1,20,000 1,55,000 Bills Payable 1,300 2,500 Profit & Loss Account 1,500 1,000
Creditors 27,500 35,000 Cash 12,500 -
85,000 1,21,000 85,000 1,21,000
Provision for Tax 10,000 15,000 Bank 4,000 21,000
Stock 5,000 3,000 Additional Information:
(a) Land & Building Purchased during the year was of Rs.60,000.
2,97,500 3,59,000 2,97,500 3,59,000
(b) Furniture costing Rs.10,000 (Accumulated Depreciation Rs.3,000) was sold during the year
Additional Information: for Rs.8,000.
(a) Land and Building purchased during the year was of Rs.30,000. [Funds from operations: Rs.7,700; Decrease in working capital: Rs.16,300
(b) Depreciation Charged on Plant during the year was Rs.16,000 Total of Funds flow statement: Rs.60,000; Depreciation on Fixed Assets: Rs.10,700]
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Q-6: From the following Balance Sheets of XYZ Ltd. prepare Fund Flow Statement. Q-8: From the following Balance Sheets of Suda Ltd. prepare Fund Flow Statement.
CA. Naresh Aggarwal’s
Liabilities 2018 2019 Assets 2018 2019
ACADEMY
Liabilities
Share Capital
2018
of
2019
ACCOUNTS
Assets
2,00,000 2,50,000 Goodwill
2018
10,000
2019
30,000 Share Capital 1,60,000 2,70,000 Gross Block 2,10,000 3,00,000
Accounting • Costing
10% Debentures
Taxation • Financial
1,00,000 • 80,000 Land and Building
Management
2,00,000 2,50,000 Securities Premium - 5,000 Less: Depreciation (60,000) (62,000)
West
Profit andPatel
LossNagar,
A/c New Delhi.
20,000Ph:8800215448. Website: www.academyofaccounts.org
70,000 Machinery 1,00,000 1,30,000 Profit & Loss A/c 45,000 72,000 Net Block 1,50,000 2,38,000
Sinking Fund 30,000 40,000 Debtors 40,000 60,000 Debentures 60,000 54,000 Bills Receivables - 13,000
Bills Payable 20,000 60,000 Stock 70,000 90,000 Creditors 5,000 19,000 Debtors 1,01,000 1,27,000
Provision for Tax 25,000 20,000 Cash 12,000 18,000 Provision for Tax 15,000 20,000 Stock 20,000 44,000
Creditors 40,000 60,000 Expense on issue Bank Balance 14,000 18,000
of Debentures 3,000 2,000 3,45,000 5,02,000 3,45,000 5,02,000
4,35,000 5,80,000 4,35,000 5,80,000 Additional Information:
Additional Information: (a) During the year Machinery costing Rs.50,000 (Accumulated Depreciation Rs.35,000) was
(a) Depreciation provided on Land & Building Rs. 20,000 and on Machinery Rs. 15,000. sold for Rs.10,000.
(b) During the year a Machine costing Rs. 30,000 (Written down Value Rs.12,000) was sold for (b) Income tax paid during the year was Rs.12,000
Rs.16,000. (c) An interim Dividend of Rs.8,000 was paid during the year.

[Funds from operations: Rs.1,22,000; Decrease in working capital: Rs.14,000
Funds flow statement: Rs.2,02,000; Building Purchased: 70,000; Plant Purchased: 57,000]
Q-7: From the following Balance Sheets of ABC Ltd. prepare Fund Flow Statement.
AoA
(d) Final Dividend of Rs.12,000 was paid during the year.
[Funds from operations: Rs.1,06,000; Increase in working capital: Rs.53,000
Total of Funds flow statement: Rs.2,31,000; Purchase of Fixed Assets: Rs.1,40,000
Depreciation of Current Year: Rs.37,000]

Liabilities 2018 2019 Assets 2018 2019 Q-9: From the following Balance Sheets of Mohini Ltd., prepare Fund Flow Statement of the
Equity Share Capital 1,50,000 2,00,000 Land & Buildings 80,000 1,00,000 company.
Debentures 80,000 50,000 Plant and Machinery 1,25,000 1,65,000 Liabilities 2018 2019 Assets 2018 2019
General Reserve 20,000 26,000 Less: Depreciation (15,000) (20,000)
Profit & Loss A/c 40,000 60,000 Stock in Trade 60,000 45,000 Equity Share Capital 45,000 65,000 Fixed Assets 64,700 83,000
Creditors 12,000 45,000 Marketable Securities 75,000 1,10,000 General Reserve 10,000 7,500 Stock 16,000 13,000
Bills Payable 20,000 16,000 Cash at Bank 15,000 20,000 Profit & Loss Account 10,000 15,000 Marketable Securities 18,000 21,000
Provision for Tax 38,000 53,000 Expense on issue 10% Debentures 30,000 20,000 Cash 2,000 2,500
of Shares 20,000 30,000 Trade Creditors 6,700 11,000 Prepaid Expenses 800 500
Bills Payable 1,300 2,500 Preliminary Expenses 1,500 1,000
3,60,000 4,50,000 3,60,000 4,50,000
1,03,000 1,21,000 1,03,000 1,21,000
Additional Information:
(a) During the year Machinery costing Rs.50,000 (Accumulated Depreciation Rs.28,000) was Additional Information:
sold for Rs.15,000. (a) A piece of Machinery costing Rs.40,000 on which accumulated depreciation was Rs.15,000
(b) Land and Buildings costing Rs.40,000 (Accumulated Depreciation Rs.10,000) was sold for was sold for Rs 28,000 and a new machine was purchased for Rs.50,000.
Rs.25,000. (b) Debentures were redeemed at 20% premium at the end of year 2019.
(c) An interim Dividend of Rs.12,000 was paid during the year. (c) Income Tax paid during the year was Rs.5,000
(d) Dividend proposed for the year 2019 is Rs.25,000 [Funds from operations: Rs.16,700; Decrease in working capital: Rs.5,300
[Funds from operations: Rs.1,36,000; Decrease in working capital: Rs.4,000 Total of Funds flow statement: Rs.70,000; Depreciation on Fixed Assets: Rs.6,700
Funds flow statement: Rs.2,30,000; Building Purchased: 50,000; Plant Purchased: 90,000] Interest paid on Debentures: Rs.3,000]
 (5) (6)

(II) ASSETS
CA. Naresh Aggarwal’s (1) Non-current assets
ACADEMY of ACCOUNTS (a) Fixed assets
(i) Tangible assets 6 4,10,000 3,00,000
Accounting • Costing • Taxation • Financial Management (ii) Intangible assets 7 2,000 10,000
(b) Other non-current assets 8 3,000 5,000
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org (2) Current assets
(a) Current Investments 9 18,000 15,000
Q-10: From the following Balance Sheets of King Ltd. prepare Fund Flow Statement. (a) Inventories 72,000 55,000
(b) Trade receivables 60,000 40,000
Liabilities 2018 2019 Assets 2018 2019
(c) Cash and cash equivalents (Bank) 15,000 10,000
Share Capital 1,60,000 2,70,000 Gross Block 2,10,000 3,00,000 TOTAL 5,80,000 4,35,000
Securities Premium - 5,000 Bills Receivables - 13,000
Prov. for Depreciation 60,000 62,000 Debtors 1,01,000 1,27,000 Notes of Accounts
Profit & Loss A/c 45,000 72,000 Stock 20,000 44,000 Particulars 31.03.2019 31.03.2018
Debentures 60,000 54,000 Expense on issue Note 1: Share Capital
Creditors 5,000 19,000 of Shares 3,000 2,000 Equity Share Capital 2,00,000 1,50,000
Provision for Tax 15,000 20,000 Bank Balance 11,000 16,000 Preferance Share Captial 50,000 50,000

AoA
2,50,000 2,00,000
3,45,000 5,02,000 3,45,000 5,02,000
(a) During the year Machinery costing Rs.40,000 (Accumulated Depreciation Rs.25,000) was Note 2: Reserve and Surplus
sold for Rs.10,000. General Reserve 30,000 25,000
Profit and Loss (Surplus) 40,000 25,000
(b) Shares of Rs.50,000 were issued at par to vendors in part payment of purchase of Fixed
70,000 50,000
Assets.
(c) Dividend proposed during the year was of Rs.15,000. Particulars 31.03.2019 31.03.2018
[Funds from operations: Rs.80,000; Increase in working capital: Rs.54,000
Total of Funds flow statement: Rs.1,55,000; Cash Purchase of Fixed Asset:80,000 Note 3: Long term Borrowings
Cash issue of Shares:60,000; Depreciation:27,000] Debentures 80,000 1,00,000
80,000 1,00,000
Q-11: From the following Balance Sheets of XYZ Ltd. prepare a Fund Flow Statement calculate Note 4: Trade Payables
funds from operations and prepare schedule of change in working capital: Creditors 60,000 25,000
Bills Payable 80,000 20,000
Particulars Note No. 31.03.2019 31.03.2018 1,40,000 45,000
(I) EQUITY AND LIABILITIES Note 5: Short term Provisions
(1) Shareholders funds Provision for Tax 40,000 40,000
(a) Share capital 1 2,50,000 2,00,000 40,000 40,000
(b) Reserves and surplus 2 70,000 50,000
Note 6: Tangible Assets
(2) Non-current liabilities Land and Building 2,70,000 2,00,000
(a) Long-term borrowings 3 80,000 1,00,000 Plant and Machinery 1,40,000 1,00,000
4,10,000 3,00,000
(3) Current liabilities
(a) Trade payables 4 1,40,000 45,000 Note 7: Intangible Assets
(b) Short-term provisions 5 40,000 40,000 Goodwill 2,000 10,000
TOTAL 5,80,000 4,35,000 2,000 10,000
 (7) (8)

(c) Trade Receivables 50,000 60,000

CA. Naresh Aggarwal’s (d) Cash & Bank 10,000 8,000
ACADEMY of ACCOUNTS (e) Other Current Assets 5 5,000
5,28,000
10,000
4,60,000
Accounting • Costing • Taxation • Financial Management
Notes : 31.3.2019 31.3.2018
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org (1) Short term Provision :
Provision for Taxation 45,000 35,000
Note 8: Other Non Current Assets (2) Tangible Assets :
Preliminary Expenses 3,000 5,000 Machinery 2,00,000 1,50,000
3,000 5,000
(3) Intangible Assets :
Goodwill 33,000 40,000
Note 9: Current Investments
Marketable Securities 18,000 15,000 (4) Current Investments :
18,000 15,000 Marketable Securities 15,000 12,000
Additional Information: (5) Other Current Assets :
(a) Land & Building purchased during the year was of Rs.1,00,000. Prepaid Expenses 5,000 10,000
(b) Depreciation Charged on Plant during the year was Rs.20,000 Additional Information :

AoA
(c) Plant costing Rs. 30,000 (Accumulated Depreciation Rs.18,000) was sold during the (a) Machinery whose original cost was Rs.50,000 was sold for Rs.10,000 during
year for Rs.10,000. the year. Accumulated depreciation on this machinery was Rs.26,000.
(b) Depreciation on Machinery charged during the year Rs.20,000.
[Funds from operations: Rs.1,22,000; Decrease in working capital: Rs.50,000 (c) An Interim Dividend was paid during the year @ 15% on Equity share Capital.
Funds flow statement: 2,32,000; Depreciation on Building: 30,000; Purchase of Plant: 72,000] [Funds from operations: Rs.1,91,000; Increase in working capital: Rs.42,000
Funds flow statement: Rs.2,01,000; Purchase of Machinery: Rs.94,000]
Q-12: From the following Balance Sheets of X Ltd., you are required to prepare a
Fund Flow Statement calculate funds from operations and prepare schedule of change Q-13: From the following Balance Sheets of Vishva Ltd., prepare Fund Flow Statement
in working capital: for the year ending 31st March, 2019 :
Particulars Note No. 31.3.2019 31.3.2018 Particulars Note No. 31.03.2019 31.03.2018
I. EQUITY AND LIABILITIES I. EQUITY AND LIABILITIES
(1) Shareholder’s Funds : 1. Shareholder’s Funds :
(a) Share Capital 2,00,000 2,00,000 (a) Share Capital 4,08,000 3,36,000
(b) Reserve and Surplus 1,55,000 80,000 (b) Reserves and Surplus 1 1,44,000 90,240
(2) Current Liabilities : 2. Non-Current Liabilities
(a) Trade Payables 1,28,000 1,45,000 (a) Long-term Borrowings (10% Debentures) 2,40,000 1,92,000
(b) Short term Provision 1 45,000 35,000 3. Current Liabilities
5,28,000 4,60,000 (a) Short-term Borrowings (Bank Overdraft) 40,000 20,000
II. ASSETS (b) Trade Payables 1,15,200 1,44,000
(1) Non-CurrentAssets : (c) Short-term Provisions
(a) Fixed Assets : (Provision for Income Tax) 67,200 72,000
(i) Tangible Assets 2 2,00,000 1,50,000 10,14,400 8,54,240
(ii) Intangible Assets 3 33,000 40,000 II. Assets :
(2) Current Assets : 1. Non-Current Assets :
(a) Current Investments 4 15,000 12,000 (a) Fixed Assets :
(b) Inventory 2,15,000 1,80,000 (1) Tangible Assets 2 4,75,200 5,28,000
 (9) (10)

(a) Short-term Borrowings (Bank Overdraft) 20,000 10,000

CA. Naresh Aggarwal’s (b) Trade Payables 57,600 72,000
ACADEMY of ACCOUNTS (c) Short-term Provisions (Provison for Tax) 33,600
5,07,200
36,000
4,27,120
Accounting • Costing • Taxation • Financial Management II. Assets :
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org 1. Non-Current Assets :
(a) Fixed Assets :
2. Current Assets (1) Tangible Assets 2 2,37,600 2,64,000
(a) Inventories 2,47,200 1,82,400 2. Current Assets
(b) Trade Receivables 3 1,34,400 1,10,400 (a) Inventories 1,23,600 91,200
(c) Cash and Cash Equivalents 1,57,600 33,440 (b) Trade Receivables 3 67,200 55,200
10,14,400 8,54,240 (c) Cash and Cash Equivalents 78,800 16,720
5,07,200 4,27,120
Notes : 31.3.2019 31.3.2018
1. Reserves and Surplus Notes : 31.3.2019 31.3.2018
Balance in Statement of Profit and Loss 62,400 23,040 1. Reserves and Surplus
General Reserve 81,600 67,200 Balance in Statement of Profit and Loss 31,200 11,520

AoA
1,44,000 90,240 General Reserve 40,800 33,600
2. Tangible Assets 72,000 45,120
Land and Building 3,84,000 3,88,800 2. Tangible Assets :
Plant and Machinery 91,200 1,39,200 Land and Building 1,92,000 1,94,400
4,75,200 5,28,000 Plant and Machinery 45,600 69,600
3. Trade Receivables 2,37,600 2,64,000
Debtors 76,800 96,000 3. Trade Receivables
Bills Receivables 57,600 14,400 Debtors 38,400 48,000
1,34,400 1,10,400 Bills Receivables 28,800 7,200
Additional information: 67,200 55,200
(a) Tax paid during the year 2018-19 Rs.57,600. Additional information:
(b) Depreciation on plant charged during the year 2018-19 was Rs.57,600. (a) Tax paid during the year 2018-19 Rs.28,800.
(c) Additional debentures were issued on March 31, 2019. (b) Depreciation on plant charged during the year 2018-19 was Rs.28,800.
[Funds from operations: Rs.1,88,160; Increase in working capital: Rs.2,21,760 (c) Additional debentures were issued on March 31, 2019.
Funds flow statement: Rs.3,08,160; Provision made for Tax: Rs.52,800] [Funds from operations: Rs.94,080; Increase in working capital: Rs.1,10,880
Funds flow statement: Rs.1,54,080; Interest on Debentures: Rs.9,600
Q-14: From the following Balance Sheets of Kuber Ltd., prepare Fund Flow Statement Provision made for Tax: Rs.26,400]
for the year ending 31st March, 2019 :
Q-15: Prepare a Fund Flow Statement from the Balance Sheets given below :
Particulars Note No. 31.03.2019 31.03.2018
Particulars Note No. 31.3.2019 31.3.2018
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds : I. EQUITY AND LIABILITIES
(a) Share Capital 2,04,000 1,68,000 (1) Shareholder’s Funds :
(b) Reserves and Surplus 1 72,000 45,120 (a) Share Capital 2.50,000 2,50,000
2. Non-Current Liabilities (b) Reserve and Surplus 1 1,12,500 45,000
(a) Long-term Borrowings (10% Debentures) 1,20,000 96,000 (2) Non-Current Liabilities :
3. Current Liabilities (a) Long-term Borrowings 2 12,500 -
 (11) (12)

(3) Current Liabilities : II. Assets

(a) Trade Payables CA. Naresh Aggarwal’s 50,000 40,000 1. Non-Current Assets
ACADEMY of ACCOUNTS
(b) Short-term Provision 3 7,500
4,32,500
10,000
3,45,000
(a) Fixed Assets
2. Current Assets
4 6,72,000 3,84,000

II. Accounting
ASSETS • Costing • Taxation • Financial Management (a) Inventories 1,34,000 1,20,000
(1)West
Non-Current
Patel Nagar,Assets
New Delhi. Ph:8800215448. Website: www.academyofaccounts.org (b) Trade Receivables 1,02,000 130,000
(a) Fixed Assets 1,55,000 1,50,000 (c) Cash and Bank Balances 50,000 98,000
(2) Current Assets : (d) Other Current Assets . 8,000
(a) Current Investments 8,000 10,000 9,58,000 7,40,000
(b) Inventory 1,60,000 75,000
Notes : 31.3.2019 31.3.2018
(c) Trade Receivables 1,00,000 1,05,000
1. Reserves and Surplus
(d) Cash & Bank Balance 9,500 5,000
Surplus i.e., Balance in Statement of Profit & Loss 50,000 2,40,000
4,32,500 3,45,000
2. Long-term Borrowings
Notes : 31.3.2019 31.3.2018 10% Long term Loan 1,60,000 1,20,000
(1) Reserve & Surplus : 3. Short-term Provisions
General Reserve 75,000 60,000 Provision for Tax 1,36,000 1,40,000

AoA
Profit & Loss Balance 37,500 (15,000) 4. Fixed Assets :
1,12,500 45,000 Machinery 7,68,000 4,30,000
(2) Long-term Borrowings : Accumulated Depreciation (96,000) (46,000)
Mortgage Loan 12,500 - 6,72,000 3,84,000
Additional information :
(3) Short-term Provision :
(i) Additional loan was taken on 1st July, 2018.
Income Tax Provision 7,500 10,000
(ii) Tax of Rs.1,06,000 was paid during the year.
Additional Information : (iii) Machinery costing of Rs.1,60,000 (Accumulated Depreciation Rs.20,000) was
(i) Depreciation written off on fixed assets @ 10% on last year’s balance. sold at a loss of Rs.36,000.
(ii) Interim Dividend paid during the year @ 10% on Share Capital. Prepare Fund Flow Statement.
(iii) Mortgage Loan was taken on 1st July 2018 @ 12% p.a. Interest has been paid [Funds from operations: Rs.33,000; Decrease in working capital: Rs.42,000
up-to date. Funds flow statement: Rs.6,19,000; Machinery purchased: Rs.4,98,000
[Funds from operations: Rs.1,16,125; Increase in working capital: Rs.72,500 Current year’s Depreciation: Rs.70,000]
Funds flow statement: Rs.1,28,625; Interest Paid: Rs.1,125]
Q-17: From the following Balance Sheets of ABC Ltd. prepare a Fund Flow Statement.
Q- 16: Following is the Balance Sheet of Super Limited as at 31st March, 2019:
Particulars Note No. 31.03.2019 31.03.2018
Particulars Note No. 31.03.2019 31.03.2018
I. EQUITY AND LIABILITIES
I. EQUITY AND LIABILITIES (1) Shareholder’s Funds :
1. Shareholder’s Funds (a) Share Capital 2,37,500 2,00,000
(a) Share Capital 6,00,000 2,00,000 (b) Reserve and Surplus 1 58,000 (15,000)
(b) Reserves and Surplus 1 50,000 2,40,000 (2) Non-Current Liabilities :
2. Non-Current Liabilities (a) Long-term Borrowings 2 1,25,000 1,00,000
Long-term Borrowings 2 1,60,000 1,20,000 (3) Current Liabilities :
3. Current Liabilities (a) Trade Payables 55,000 25,000
(a) Trade Payables 12,000 40,000 (b) Short term Provision 3 8,000 5,000
(b) Short-term Provisions 3 1,36,000 1,40,000 4,83,500 3,15,000
9,58,000 7,40,000
 (13) (14)

Q-18: From the following Balance Sheets of P Ltd., prepare a Fund Flow Statement
CA. Naresh Aggarwal’s calculate funds from operations and prepare schedule of change in working capital:
ACADEMY of ACCOUNTS Particulars Note No. 31.3.2019 31.3.2018
Accounting • Costing • Taxation • Financial Management I. EQUITY AND LIABILITIES
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org (1) Shareholder’s Funds :
(a) Share Capital 5,00,000 4,50,000
II. ASSETS (b) Reserve and Surplus 1 1,18,000 70,000
(1) Non-Current Assets : (2) Current Liabilities :
(a) Fixed Assets 4 2,26,000 85,000 (a) Trade Payables 1,49,000 1,17,000
(b) Non-Current Investments 22,500 20,000 (b) Short term Provisions (Prov. for Tax) 50,000 40,000
(2) Current Assets : 8,17,000 6,77,000
(a) Current Investments 15,000 25,000 II. ASSETS
(b) Inventory 1,00,000 75,000 (1) Non-Current Assets :
(c) Trade Receivables 28,000 88,000 (a) Fixed Assets
(d) Cash and Bank 92,000 22,000 (i) Tangible Assets 2 3,70,000 2,80,000
4,83,500 3,15,000 (ii) Intangible Assets 3 90,000 1,15,000

AoA
(2) Current Assets :
Notes : 31.3.2019 31.3.2018
(a) Inventory 1,09,000 77,000
(1) Reserve & Surplus :
(b) Trade Receivables 2,30,000 1,80,000
Securities Premium 30,000 -
(c) Cash & Cash Equivalents 18,000 25,000
Profit & Loss Balance 28,000 (15,000)
8,17,000 6,77,000
58,000 (15,000)
(2) Long-term Borrowings : Notes : 31.3.2019 31.3.2018
15% Debentures 1,25,000 1,00,000 (1) Reserve & Surplus :
General Reserve 70,000 40,000
(3) Short term Provision : Profit & Loss Balance 48,000 30,000
Provision for Doubtful Debts 7,000 5,000 1,18,000 70,000
Provision for Repairs 1,000 - (2) Tangible Assets :
8,000 5,000 Land and Building 1,70,000 2,00,000
(4) Fixed Assets : Plant 2,00,000 80,000
Tangible Assets 2,50,000 1,00,000 3,70,000 2,80,000
Less : Accumulated Depreciation (24,000) (15,000) (3) Intangible Assets :
2,26,000 85,000 Goodwill 90,000 1,15,000

Additional Information : Additional Information :

(a) Interim Dividend paid during the year Rs.18,000. (a) Contingent Liability 31.3.2019 31.3.2018
(b) Non Current Investments costing Rs.5,000 were sold at a profit of 40%. Proposed Dividend 40,000 32,000
(c) Tangible Fixed Assets Costing Rs.10,000 (accumulated depreciation Rs.4,000) (b) Depreciation of Rs.10,000 and Rs.20,000 has been charged on plant, land and
were sold for Rs.8,500. buildings respectively.
(d) Additional debentures amounting to Rs.25,000 were issued at par on 01.08.2018. (c) An interim dividend of Rs.20,000 has been paid.
Interest on debentures has been paid regularly. (d) Income tax of Rs.25,000 has been paid.
[Funds from operations: Rs.87,000; Decrease in working capital: Rs.8,000 (e) Rent Received during the year Rs.10,000.
Funds flow statement: Rs.2,13,000; Purchase of Machinery: Rs.1,60,000 [Funds from operations: Rs.1,80,000; Increase in working capital: Rs.43,000
Current Year’s Depreciation: Rs.13,000; Purchase of Non Current Investments: Rs.7,500] Funds flow statement: Rs.2,50,000; Purchase of Machinery: 1,30,000; Sale of Land :10,000]
 (15) (16)

(4) Fixed Assets :

CA. Naresh Aggarwal’s Land - 2,00,000
ACADEMY of ACCOUNTS Plant & Machinery
Accumulated Depreciation
2,00,000
(76,000)
1,60,000
(80,000)
Accounting • Costing • Taxation • Financial Management 1,24,000 2,80,000
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org Additional Information :—
(a) A piece of machinery was sold for Rs.16,000 during the year 2019. Its original
cost was Rs.40,000 and depreciation of Rs.30,000 has been provided on it.
Q-19: Following are the Balance Sheets of Super Star Ltd. :—
(b) Non-Current Investments were sold at a loss of 40%.
Particulars Note No. 31.03.2019 31.03.2018 (c) Land was sold for Rs.3,00,000.
I. EQUITY AND LIABILITIES (d) Interest paid on public deposits amounted to Rs.12,000.
(1) Shareholder’s Funds : You are required to prepare a Fund Flow Statement calculate funds from operations
(a) Share Capital 4,00,000 4,00,000 and prepare schedule of change in working capital:
(b) Reserve and Surplus 1 1,44,000 (74,000) [Funds from operations: Rs.1,96,400; Increase in working capital: Rs.4,30,000
(2) Non-Current Liabilities : Funds flow statement: Rs.5,72,000; Loss on sale of Investment: Rs.6,400]
(a) Long-term Borrowings 2 1,50,000 1,00,000
(3) Current Liabilities : Q-20: From the following Balance Sheets of Star Ltd., you are required to prepare

AoA
(a) Trade Payables 88,000 92,000 Fund Flow Statement.
(b) Short-term Provision 3 48,000 60,000 Particulars Note No. 31.03.2019 31.03.2018
8,30,000 5,78,000
I. EQUITY AND LIABILITIES
II. ASSETS
(1) Shareholder’s Funds :
(1) Non-Current Assets :
(a) Share Capital 6.60,000 6,00,000
(a) Fixed Assets 4 1,24,000 2,80,000
(b) Reserve & Surplus 50,000 60,000
(b) Non-Current Investments 4,000 20,000
(2) Non-Current Liabilities:
(2) Current Assets :
Long-term Borrowings 50,000 80,000
(a) Inventory 4,00,000 1,20,000
(3) Current Liabilities :
(b) Trade Receivables 2,42,000 1,12,000
(a) Short-term Borrowings 1 10, 000 —
(c) Cash & Cash Equivalents 60,000 46,000
(b) Trade Payables 1,94,000 2,48,000
8,30,000 5,78,000
(c) Short-term Provision 2 60,000 48,000
10,24,000 10,36,000
Notes : 31.3.2019 31.3.2018
II. ASSETS :
(1) Reserve & Surplus :
(1) Non-Current Assets :
General Reserve 44,000 -
(a) Fixed Assets :
Profit & Loss Balance 1,00,000 (74,000)
(i) Tangible Assets 5,20,000 4,00,000
1,44,000 (74,000)
(ii) Intangible Assets 3 15,000 1,20,000
(2) Long-term Borrowings :
(b) Non-Current Investments 1,28,000 1,00,000
Public Deposits 1,50,000 1,00,000
(2) Current Assets :
(3) Short-term Provision :
(a) Inventory 1,25,000 1,40,000
Provision for Taxation 40,000 50,000
(b) Trade Receivables 1,96,000 2,60,000
Provision for Doubtful Debts 8,000 10,000
(c) Cash & Cash Equivalents 40,000 16,000
48,000 60,000
10,24,000 10,38,000
 (17) (18)

(2) Current Assets :

CA. Naresh Aggarwal’s (a) Trade Receivables 1,33,500 1,09,500
ACADEMY of ACCOUNTS (b) Cash & Cash Equivalents 5,000
3,21,000
3,000
2,87,500
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org Notes : 31.3.2019 31.3.2018
(1) Reserve & Surplus
Notes : 31.3.2019 31.3.2018 Balance from statement of Profit & Loss 98,500 87,500
(1) Short-term Borrowings : Securities Premium 5,000
Bank Overdraft 10,000 — 1,03,500 87,500
(2) Short-term Provision : (2) Short-term Borrowings :
Taxation Provision 60,000 48,000 Bank Overdraft 10,000 7,500
(3) Intangible Assets : (3) Short-term Provision :
Goodwil — 1,00,000 Provision for Tax 31,000 32,500
Patents 15,000 20,000 Provision for Doubtful Debts 11,000 8,000
15,000 1,20,000 42,000 40,500
Additional Information : (4) Tangible Assets :

AoA
(a) Machinery whose original cost was Rs.1,00,000 (accumulated depreciation Land 75,000 35,000
thereon being Rs.64,000) was sold for Rs.40,000. Machinery 60,000 1,00,000
(b) Depreciation on Machinery charged during the year was Rs.50,000. 1,35,000 1,35,000
(c) Non-Current Investments costing Rs.20,000 were sold for Rs.64,000 during the Additional Information :
year. (a) Machinery of the book value of Rs.30,000 was sold for Rs.9,000 during the
(d) Interest paid on long-term borrowings amounted to Rs.6,000. year.
[Funds from operations: 1,63,000; Dec. in w. cap.: 11,000; Funds flow statement: 3,38,000 (b) Interim Dividend paid during the year Rs.12,500.
Investments Purchased: 48,000; Tangible Assets Purchased: Rs.2,06,000] (c) During the year Company sold 40% of its original non-current investments at a
loss of 20%.
Q-21: Following are the Balance Sheets of Moon Ltd: You are required to prepare Fund Flow Statement.
[Funds from operations: Rs.89,500; Increase in working capital: Rs.32,000
Particulars Note No. 31.03.2019 31.03.2018
Funds flow statement: Rs.1,34,500; Purchase of Investments : Rs.7,500]
I. EQUITY AND LIABILITIES
(1) Shareholder’s Funds : Q-22: You are required to prepare Cash-Flow Statement from the following
(a) Share Capital 1,50,000 1,25,000 informations :
(b) Reserve and Surplus 1 1,03,500 87,500
Particulars Note No. 31.03.2019 31.03.2018
(2) Current Liabilities :
(a) Short-term Borrowings 2 10,000 7,500 I. EQUITY AND LIABILITIES
(b) Trade Payables 15,500 27,000 (1) Shareholder’s Funds :
(c) Short-term Provision 3 42,000 40,500 (a) Share Capital 5,92,000 5,60,000
3,21,000 2,87,500 (b) Reserve & Surplus 84,480 80,320
II. ASSETS : (2) Non-Current Liabilities :
(1) Non-Current Assets : Long-term Borrowings 1 48,000 96,000
(a) Fixed Assets : (3) Current Liabilities :
(i) Tangible Assets 4 1,35,000 1,35,000 (a) Trade Payables 94,720 82,880
(ii) Intangible Assets 25,000 15,000 (b) Short Term Provision 2 6,400 5,600
(b) Non-Current Investments 22,500 25000 8,25,600 8,24,800
 (19) (20)

II. ASSETS : Q-24: From the following information calculate funds from operations:
CA. Naresh Aggarwal’s Profit and Loss Account
(1) Non-Current Assets :
ACADEMY of ACCOUNTS
(a) Fixed Assets :
(i) Tangible Assets 2,40,000 1,60,000
Particulars Amount Particulars Amount
Accounting • Costing
(ii) Intangible Assets •
Taxation • Financial40,000 Management 80,000 To Opening Stock 1,00,000 By Sales 14,00,000
(2)West Patel Nagar,
Current AssetsNew
: Delhi. Ph:8800215448. Website: www.academyofaccounts.org To Purchases of Materials 9,50,000 By Dividend Received 30,000
(a) Inventory 3,41,600 3,93,600 To Wages 2,00,000 By Commission Accrued 10,000
(b) Trade Receivables 1,41,600 1,19,200 Add: Outstanding 50,000 2,50,000 By Profit on Sale of Building
(c) Cash & Cash Equivalents 62,400 72,000 To Salaries 80,000 Book value 5,00,000
8,25,600 8,24,800 Add: Outstanding 40,000 Sold for 6,20,000 1,20,000
1,20,000 By Closing Stock 1,30,000
Notes : 31.3.2019 31.3.2018 Less: Prepaid 5,000 1,15,000
(1) Long-term Borrowings : To Office Expenses 60,000
12% Debentures 48,000 96,000 To Selling & Distribution Exp. 40,000
(2) Short Term Provision : To Depreciation 55,000
Provision for Doubtful Debts 6,400 5,600 To Preliminary Exp. written off 12,000
To Goodwill written off 20,000

AoA
Additional information : To Net Profit 88,000
(i) Interim Dividend paid during the year Rs.28,000
(ii) Plant Purchased Rs.80,000 16,90,000 16,90,000
(iii) Intangible Assets written off during the year Rs.40,000
[Funds from operations: Rs.25,000]
(iv) Debentures redeemed on 1st Feb. 2019 Rs.48,000
(v) Interest on debentures has been paid up-to date.
Q-25: From the following information calculate funds from operations:
[Funds from operations: Rs.82,720; Decrease in working capital: Rs.51,840
Profit and Loss Account
Funds flow statement: Rs.1,66,560; Interest on Debentures: Rs.10,560]
Particulars Amount Particulars Amount
Q-23: From the following information calculate funds from operations:
To Opening Stock 40,000 By Sales 8,40,000
Profit and Loss Account
To Purchases 3,20,000 By Closing Stock 60,000
Particulars Amount Particulars Amount To Wages 40,000 By Dividend Received 40,000
Add: Outstanding 60,000 1,00,000 By Commission Accrued 20,000
To Cost of Goods Sold 2,00,000 By Sales (including Cash Sales 2,50,000
To Rent 1,20,000 By Net Loss 60,000
To Office Expenses 10,000 amounted to Rs.50,000)
Add: Outstanding 40,000 1,60,000
To Selling Expenses 3,000 By Profit from Sale of Land 10,000
To Salaries 80,000
To Depreciation 4,000 By Interest Received 12,000
To Selling and Distribution Exp. 1,20,000
To Loss on Sale of Plant 2,000
To Depreciation 60,000
To Goodwill written off 4,000
To Preliminary Exp. written off 20,000
To Income Tax Paid 9,000
To Loss on Sale of Fixed 20,000
To Net Profit 40,000
To Goodwill written off 1,00,000
2,72,000 2,72,000
10,20,000 10,20,000
[Funds from operations: Rs.37,000]
[Funds from operations: Rs.1,00,000]
 (21) (22)

Statement for Fund from Operation

CA. Naresh
Q-26: From the following information calculate Aggarwal’s
funds from operations and prepare schedule of For the year ended ...............

ACADEMY of ACCOUNTS
change in working capital:
Income Statement
Particulars Rs. Rs.
Accounting • Costing • Taxation
For the year • Financial
ended 31st March, 2019 Management Net Profit after tax for the year xxxx
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.orgRs. Add: Depreciation written off xx
Sales 16,70,000 Goodwill written off xx
Less : Cost of Goods Sold -13,30,000 Preliminary Expenses Written off xx
GROSS PROFIT 3,40,000 Underwriting Commission Written off xx
Less: Administrative Expenses 90,000 Discount on issue of Debentures written off xx
Selling Expenses 63,000 Expense on issue of Debentures/Shares written off xx
Depreciation 32,000 Loss on Sale of Fixed Assets xx
Preliminary Expenses Written off 10,000 Interest Paid xx
Direct Taxes 15,000 -2,10,000 Dividend Paid (Interim or Final) xx
NET PROFIT AFTER INCOME TAX 1,30,000 Transfer to General Res. / Sinking Fund / Other Reserves xx
--------------- Provision for Tax made during the year xx
Current Assets and Current Liabilities 31.3.2018 31.3.2019 Other Non Current / Non Operating Expenses debited xx xxx

AoA
Sundry Debtors 60,000 56,000 Less: Profit on Sale of Fixed Assets xx
Sundry Bills Receivable 5,000 7,000 Interest / Rent / Dividend Received xx
Creditors 40,000 48,000 Refund of Tax xx
Bills Payable 10,000 11,000 Transfer from Reserves or funds xx
Outstanding Expenses 2,000 1,600 Other Non Current / Non Operating Incomes credited xx (xxx)
Prepaid Expenses 900 1,200 Net Fund Flow From Operation xxxx
Inventory 70,000 58,000
[Funds from operations: Rs.1,87,000; Decrease in working capital: Rs.22,300] Adjusted Profit and Loss Account
(For the year ended....)
Particulars Rs. Particulars Rs.
•••••••••••••••••••••• To Depreciation xxx By Balance b/d xxx
To Goodwill written off xxx By Profit on Sale of Fixed Assets xxx
To Preliminary Expenses xxx By Interest / Rent / Dividend Received xxx
To Underwriting Commission xxx By Refund of Tax xxx
To Discount on issue of Debentures xxx By Transfer from Reserves / Funds xxx
To Expense on issue of Shares xxx By Other Non Operating Incomes xxx
To Expense on issue of Debentures xxx By Funds from Operations (Bal. Fig.) xxx
To Loss on Sale of Fixed Assets xxx
To Interest / Dividend Paid xxx
To Provision for Taxation xxx
To Transfer to Reserves / Funds xxx
To Other Non Operating Expenses xxx
To Funds Lost in Operations (Bal. Fig.) xxx
To Balance c/d xxx
xxxx xxxx
 (23) (24)

CA. Naresh Aggarwal’s Fund Flow Statement

(For the year ended....)
ACADEMY of ACCOUNTS Scources Rs. Applications Rs.
Accounting • Costing • Taxation • Financial Management
Issue of Share xxx Redemption of Preference Shares xxx
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org Issue of Debentures xxx Buy-Back of Equity Shares xxx
Loan Taken xxx Redemption of Debentures xxx
Sale of Fixed Assets xxx Repayment of Loan xxx
Schedule of changes in working capital Sale of Investments xxx Purchase of Fixed Assets xxx
Refund of Tax xxx Purchase of Investments xxx
Particulars Last Year Current Year Increase Decrease Interest / Rent / Dividend Received xxx Income Tax Paid xxx
Figures Figures in WC in WC
Decrease in Working Capital xxx Interest Paid xxx
Funds from operations xxx Dividend Paid (Interim or Final) xxx
Increase in Working Capital xxx
(1) CURRENT ASSETS Funds lost in Operations xxx
Cash in hand xxxx xxxx

AoA
Bank Balance
Marketable Securities
Inventory / Stock
Debtor
Bills Receivable
Outstanding Incomes
Prepaid Expenses
Other Current Assets ••••••••••••••••••••••
Total Current Assets (A)

(2) CURRENT LIABILITIES

Trade Creditors
Bills Payable
Outstanding Expenses
Advance Incomes
Other Current Liabilities
Total Current Liabilities (B)

Total Working Capital (A-B)

Change in Working Capital