Fund Flow Statement-FR FSA

3
Fund Flow Statement

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Fund Flow Statement
Q.1 [1996]- The balance sheet of national plastics ltd. As on 31.12.94 and on
31.12.95 are given below:
PARTICULARS 31.12.94 31.12.95
I. EQUITY AND LIABILITIES

1. Shareholders fund
΀Ă΁ share capital
Share of RS.1 each 6,00,000 7,00,000
΀ď΁ reserves and surplus
Share premium - 20,000
Profit & loss A/C
64,000 1,21,800
Profit on sale of freehold property
Non- current liabilities - 4,000
2. [a] long- term borrowings 8
% debentures
1,00,000 -
3. Current liabilities 1,28,000 1,36,000
TOTAL 8,92,000 9,81,800
II. ASSETS
[1] Non-current assets
[a] fixed assets
[i] tangible assets Freehold
property [at cost]Plant & 40,000 32,000
machinery Current assets
[a] other current assets 5,72,000 6,16,000
[2] Preliminary expenses 2,76,800 3,32,200
3,200 1,600
8,92,000 9,81,800
TOTAL
The entire share capital of the company was issued for cash. Depreciation on plant &machinery written off
for the year 1995 amounted to RS. 56,000.
During the year, the company paid a dividend of Rs. 30,000Prepare for the
year 1995:
΀Ă΁ a statement of changes in working capital , and
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΀ď΁ a statement of sources and application of funds
Q.2 [1997]- from the following balance sheet of XYZ ltd. Make out [i] statementof changes in
working capital and [ii] a fund flow statement for the year 1991.
PARTICULARS 1990 1991

Shareholders fund
[a] share capital
Equity capital 3,00,000 4,00,000
8 % redeemable preference share
[b] reserve and surplus 1,50,000 1,00,000
Capital reserve General
reserve - 20,000
Profit & loss a/c 40,000 50,000
Current liabilities
30,000 48,000
΀Ă΁ trade payables
Sundry creditors
Bills payable
25,000 47,000
΀ď΁ other current liabilities
Liability for expenses 20,000 16,000
΀Đ΁ short – term provisions
Provision for taxation 30,000 36,000
Proposed dividend
40,000 50,000
42,000 50,000
TOTAL 6,77,000 8,17,000

ASSETS
Non-current assets
[a] fixed assets
΀ŝ΁ tangible assets 2,00,000 1,70,000
Land & building
Plant
80,000 2,00,000
΀ŝŝ΁ intangible assets
Goodwill
1,00,000 80,000
[b] non – current investments
Investment
Current assets 20,000 30,000
΀Ă΁ inventories
Stock
΀ď΁ trade receivables 77,000 1,09,000
Debtors
Bills receivable 1,40,000 1,70,000
΀Đ΁ cash & cash equivalent 20,000 30,000
Cash in hand
Cash at bank
15,000 10,000
΀Ě΁ other current assets
Preliminary expenses 10,000 8,000
15,000 10,000
TOTAL 6,77,000 8,17,000
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Additional information:
΀Ă΁ a piece of land has been sold out in 1991 and the profit has been credited to capitalreserve
account .
΀ď΁ a machine has been sold for Rs. 10,000 . the written down value of the machine was Rs.12,000.
Depreciation of Rs. 10,000 is charged on plant account in 1991.
΀Đ΁ an interim dividend of Rs. 20,000 has been paid in 1991.
[1999]- from the following balance sheet of PM Ltd. :-
΀ŝ΁ a statement of changes in working capital ,
΀ŝŝ΁ a fund flow statement for the year 1998.
Q.3 BALANCE SHEET
PARTICULARS 31.12.1997 31.12.1998

EQUITY AND LIABILITIES
Shareholders fund
[a] share capital
Equity share of Rs. 100 each 10,00,000 15,00,000
Redeemable preference share Rs. 100,
Rs. 50 paid . 5,00,000 NIL
[b] reserves &
surplus
Securities 25,000 NIL
premium
Capital redemption reserve NIL 5,00,000
General reserve 10,00,000 7,00,000
Profit & loss 2,75,000 3,00,000
a/c.
Current
10,00,000 6,00,000
liabilities
38,00,000 36,00,000
TOTAL
ASSETS
Non- current assets
a. fixed assets
i. tangible assets
Plant at WDV 15,00,000 18,00,000

Current assets
a. inventories
Stock 6,00,000 3,00,000
b.Trade receivables
Debtors 15,00,000 10,00,000
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c.cash & cash

equivalent Cash
balance 2,00,000 5,00,000
TOTAL 38,00,000 36,00,000

Additional information :-
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΀Ă΁ during 1998 the company paid Rs. 20,000 dividend and Rs. 56,250 as preferencedividend.
΀ď΁ the company redeemed the preference share at a premium of 5% after making a call ofRs. 50 per
share to make the shares fully paid .
΀Đ΁ during the year 1998 one plant , whose book value was Rs. 1,00,000 was sold at a loss ofRs. 20,000 and
the company purchased a plant for Rs. 60,000.
Q.4. [2000] – the summarized balance sheet of X ltd. As on 31st march 1998 and 31stmarch 1999 are asfollows:-
PARTICULARS 31.03.98 31.03.99

[1] Shareholders fund
[a] share capital
Share capital 6,00,000 7,00,000
[b] reserves & surplus
Capital reserve - 20,000
Profit & loss a/c. 1,20,000 1,50,000
[2] Non current liabilities
[a] long term borrowings
Debentures 4,00,000 2,80,000
[3] Current liabilities
[a] trade payables
Trade creditors 2,40,000 2,60,000
[b] other current liabilities
Proposed dividend 60,000 72,000
Unclaimed dividend - 8,000
[c] short term provision
Provision for income tax 1,80,000 1,70,000
TOTAL 19,40,000 20,60,000
II. ASSETS
[1] Non current assets
[a] fixed assets
[i] tangible assets
Fixed assets [at cost ] 16,00,000 19,00,000
Less: depreciation 4,60,000 6,80,000
11,40,000 12,20,000
[b] non current investments
Trade investment 2,00,000 1,60,000
[2] Current assets 5,60,000 6,60,000
[a] other current assets
TOTAL 19,40,000 20,60,000
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During the year ended 31st march 1999 the company
΀ŝ΁ sold one machine for Rs. 50,000 the cost of the machine was Rs. 1,28,000 and thedepreciation
provided for it was Rs. 70,000.
΀ŝŝ΁ redeemed 30% of debentures @ Rs. 103.
΀ŝŝŝ΁ sold some trade investment at a profit which was credited to capital reserve .
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΀ŝǀ΁ paid income tax Rs. 1,65,000.
Prepare fund flow statement for the year ended 31st march 1999.
Q.4 [2000]-the balance sheet of hari ltd. As on 31st December 2003 and 2004 aregiven below :
PARTICULARS 31.03.2003 31.03.2004

[1] Shareholders fund
΀Ă΁ share
capitalShare
6,00,000 8,00,000
capital
΀ď΁ reserves &
surplusCapital reserve - 20,000
General reserve Profit 3,40,000 4,00,000
& loss a/c. 1,20,000 1,50,000
[2] Non current liabilities
Debentures
4,00,000 2,80,000
Current liabilities
[3] 2,40,000 2,60,000
[a] other current liabilities
Unclaimed dividend
[c] short term provision - 8,000
Provision for income tax
Proposed dividend 1,80,000 1,70,000
60,000 72,000
TOTAL 19,40,000 21,60,000
ASSETS
II.
Non current assets
[1]
[a] fixed assets
16,00,000 19,00,000
[i] tangible assets Fixed
4,60,000 5,80,000
assets [at cost ]
Less: depreciation 11,40,000 13,20,000

2,00,000 1,60,000
Trade investment
5,60,000 6,60,000
Current assets
[2] Preliminary expenses 40,000 20,000
19,40,000 21,60,000
TOTAL
During the year 2004, the company
΀ŝ΁ sold one machine for 50,000 the cost of which was 1,00,000 and the depreciationprovided on
it was 40,000.
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΀ŝŝ΁ provided 1,80,000 as depreciation
΀ŝŝŝ΁ redeemed 30% of debentures @ 105
΀ŝǀ΁ sold some trade investments at a profit of 20,000 which was credited to capital reserve .
΀ǀ΁ decided to value stock at cost whereas previously the practice was to value stock at costless 10%. The
stock according to books on 31.12.2003 was Rs. 1,08,000. The stock on 31.12.2004 was correctly valued
at cost at 1,50,000 and
΀ǀŝ΁ decided to write off fixed assets costing 28,000 on which depreciation amounting to20,000 has
been provided .
You are required to prepare the statement of sources and application of funds during 2004showing the
changes in the working capital .All working should form part of your answer .
Q.5 [2001] – the balance sheet of symphony ltd. As on 30thjune 1999 and 30thjune2000 are given below
–
PARTICULARS 30.6.1999 30.6.2000

Equity share capital 5,00,000 6,50,000
Preference share
1,00,000 50,000
΀ď΁ reserve & surplus
General reserve Profit
2,00,000 2,50,000
& loss a/c
Profit on sale investmentNon 1,00,000 2,00,000
current liabilities - 10,000
2. [a] long term borrowings8%
debentures
Current liabilities 3,00,000 2,00,000
3.
Creditors for expenses
Creditors for goods
10,000 12,000
΀ď΁ short term provision
Provisions for income tax 1,60,000 2,50,000
Proposed dividend
70,000 75,000
30,000 35,000
TOTAL 14,70,000 17,32,000
II.
ASSETS
1. Non-current assets
[a] fixed assets
assets [at cost ] 10,00,000 12,00,000
Less : depreciation 2,00,000 2,50,000
Net block 8,00,000 9,50,000
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Investment at cost 1,80,000 1,80,000
2. Current assets
΀Ă΁ inventories
Stock 2,00,000 2,50,000
΀ď΁ trade receivables
Debtors
2,25,000 2,65,000
Bills receivable
΀Đ΁ cash & cash equivalent 38,000 62,000
Cash
΀Ě΁ other current assets 10,000 10,000
Prepaid expenses
Misc . expenses 2,000 5,000
15,000 10,000
TOTAL 14,70,000 17,32,000
Other information:-
΀Ă΁ during 1999-2000 fixed assets [ present book value 10,000 , depreciation written off30,000] was
sold for 8,000.
΀ď΁ the dividend proposed in last year was paid in 1999-2000.
΀Đ΁ during 1999-2000 investments costing 80,000 were sold and investments of the samecost were
purchased .
΀Ě΁ preference shares were redeemed at 5 % premium by issuing new equity shares anddebentures
were redeemed at 10% premium .
΀Ğ΁ taxation liability for 1998-1999 were settled at 55,000.
On the basis of the above information prepare a fund flow statement of symphony ltd. Forthe year ended
30 June 2000.
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Q.6 [2004]- from the summarized balance sheet of sonar bangle ltd. As on31.03.2002 and
31.3.2003
PARTICULARS 31.3.02 31.3.03

Shareholders fund
[a] share capital
Equity share of Rs. 10 each 4,00,000 6,00,000
[b] reserve & surplus
Securities premium 50,000 60,000
Profit & loss a/c. 1,10,000 1,08,000
Non- current liabilities
6% debentures 1,00,000 1,50,000
Current liabilities
[a] short term borrowings
Bank loan 1,10,000 1,30,000
[b] trade payables
Sundry creditors 70,000 83,000
Bills payable 13,000 15,000
[c] short term provisions
Proposed divided 40,000 50,000
11,33,000 13,71,000
TOTAL
ASSETS
Non current assets

[a] fixed assets
[i] tangible assets
Land & building 4,00,000 5,00,000
Plant & machinery 4,50,000 5,30,000
Investments 40,000 50,000
Current assets
[a] inventories
Stock 1,20,000 1,40,000
[b] trade receivables
Sundry debtors 80,000 95,000
[c] cash & cash equivalent
Cash at bank 35,000 44,000
[d] other current assets
Discount on debentures 8,000 12,000
TOTAL 11,33,000 13,71,000
Additional information :-
΀ŝ΁ depreciation on land & building for the year 2002-2003 was Rs. 20,000.
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΀ŝŝ΁ accumulated depreciation on plant & machinery on 31.03.02 was 1,50,000 and on
31.03.03 was 1,70,000.
΀ŝŝŝ΁ machinery costing Rs. 50,000 [ written down value 10,000 ] was sold for 12,000.
΀ŝǀ΁ 6 % debentures were issued at 10 % discount
΀ǀ΁ bonus share were issued at the rate of one share for every four shares held on 31.03.02out of
general reserve .
΀ǀŝ΁ interim dividend paid during the year 20,000.You are

required to prepare :
΀ŝ΁ a statement showing changes in working capital
΀ŝŝ΁ a fund flow statement for the year ended 31.03.2003.
Q.7 [2006] – the statement of changes in working capital of K Ltd. For the year ended 31st
December 2005 showed the following information :
On 31.12.2005 Effect on working

capital
Debtors 40,000 15,000 INCREASE
Stock 60,000 NIL -
Bills receivable 55,000 10,000 DECREASE
Creditors 47,000 12,000 INCREASE
Bills payable 16,000 5,000 DECREASE
Calculate the value of the aforesaid current assets and current liabilities on 31.12.2004.
Q.8 (2004) From the following information summarised balance sheet of a company as at 31st
March,2004. And 31st March,2004 and 31st March, 2004 respectively, you are required to
prepare
Ă͘ Statement of change in working capital
ď͘ Statement of sources and application of funds.
PARTICULARS 2004 .2005

[a] share capital
Equity share capital 75,000 120,000
10% redeemable Preference share 1,00,000 80,000
reserve for
replacement 15,000 10,000
Profit & loss a/c 1,00,350 102,700
2. Noncurrent liabilities
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[a] long term borrowingslong

term loan 40,000
Current liabilities
3.
Trade creditors 84,500 75,550
Proposed dividend on equity shares
12,000 24,000
΀Đ΁ other current liabilities
Bank overdraft
22,000 -
TOTAL 408,800 4,52,250

II.
ASSETS
1.
Non-current assets
[a] fixed assets
[i] tangible assets Fixed 2,40,070 2,53,730
assets [at cost ]Less :
90020 98,480
depreciation Net block
[b] non current investments 1,50,050 1,55,250
Investment at cost
61,000 76,000
Current assets
2.
΀Ă΁ inventories
Stock 98,000 1,04,000
Debtors 88,000 85,000
΀Đ΁ cash & cash equivalent
Cash
11,750 32,000
TOTAL 408,800 4,52,250
Additional information.
/͘ During the year additional equity capital was issued to the extent of ₹25,000 by way ofbonus shares
fully paid up
//͘ Final dividend on preference shares and an interim dividend of ₹4,000 on equity shareswere paid on
31st March,2005.
///͘ Proposed dividends for the year ended 31st March 2004 were paid in October 2004
/s͘ Movement in reserve for replacement of machinery account represents transfer to profitand loss
account
s͘ During the year, one item of plant was undervalued by ₹3,000 and credit for the wastaken in the
profit and loss account.
s/͘ ₹1700 being expenditure on fixed asses for the year ended 31st March 2004 wronglydebited to
sundry debtors then, was corrected in the next year.
s//͘ Fixed assets costing ₹6,000 (accumulated depreciation ₹4,800) were sold for ₹250. Loss
50
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arising there from was written off.

s///͘ Preference shares redeemed in the year (June,2004) were out of a fresh issue of equityshares.
Premium paid on redemption was 10%.
Q.9 [2008]- From the particulars calculate fund from operations:
Profit & loss a/c as on: 01.04.06 1,60,000

as on: 31.03.07 2,00,000
transactions during the year
transfer fund to revenue reserve 40,000
depreciation on fixed assets 16,000
underwriting commission wriiten off 8,000
interest received 4,000
interim dividend paid 16,000
sale of old machinery [ book value 48,000] 56,000
Q.10 2009) the following are the condensed balance sheet of B ltd. at the end of 2007 and
2008.
Additional information.

Equity share capital 250,000 350,000
΀ď΁ reserve & surplus 150,000 140,000
[a] long term borrowings6%
debentures
50,000 20,000
3. Current liabilities
Trade creditors
79,000 83,000
Provision for income tax
Provision for dividend 30,000 25,000
Provision for depreciation
37500 52,500
Provision for bad debt
80,000 1,00,000
13,000 18,000
Outstanding expenses
7000 15000
TOTAL 696,500 803,500
II. ASSETS
Non-current assets
1.
[a] fixed assets
[i] tangible assets Land 1,25,000 125,000
and building Plant and
machinery 2,40,000 360,000
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2. Current assets
[a] inventories
Stock 1,90,000 193,000
[b] trade receivables
Debtors 60,000 90,000
Bills receivable 26,000 15,000
[c] cash & cash equivalent
Cash 30,500 5500
Debenture issue exp. 10,000 3,000
Preliminary exp 15,000 12,000
TOTAL 696,500 8,03,500
ĂͿ income tax paid on 2008 was ₹35,000.

ďͿ an old machine was sold for 44,000. The cost and written down value of which were
₹60,000 and ₹40,000 respectively.
ĐͿ bonus shares at 2 for every 5 equity shares were issued out of accumulated reserve andsurplus.
ĚͿ out of the proposed dividend for 2007 only ₹30,000 were paid in 2008 and in addition tothat an
interim dividend for ₹25,000. Was paid in the same year.
Prepare fund flow statement and statement of change in working capital of the company forthe year ending
31.12.2008.
Q.11 [2008] Prepare the following fund flow statement of Y ltd. From the following
Balance sheet of Y ltd. As on 31st march 2006 and 31st march 2007
PARTICULARS 31.3.06 31.3.2007

Equity share capital 6,00,000 8,00,000
capital reserve general - 20,000
reserve Profit & loss
a/c 3,40,000 4,00,000
1,20,000 1,50,000
2. Non current liabilities
debentures 4,00,000 2,80,000
3.
Current liabilities
΀Ă΁ other Current liabilities
Liabilities for goods and services 2,40,000 2,60,000
Provisions for income tax
180,000 170,000
Proposed dividend
60,000 72,000
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Unpaid dividend - 8000

TOTAL 19,40,000 21,60,000
II.
ASSETS
1.
Non-current assets
[a] fixed assets
assets [at cost ] 16,00,000 19,00,000
Less : depreciation 4,60,000 5,80,000
11,40,000 13,20,000
Trade investments 200,000 1,60,000
Current assets 560,000 6,60,000
2.
TOTAL 19,40,000 21,60,000
Additional information during the year
ĂͿ sold one machinery for 50,000 the cost of the machinery was 1,28,000 and thedepreciation
provided for it amounted to 70,000
ďͿ provided 190,000 as depreciation
ĐͿ redeemed 30% of the debentures @103
ĚͿ some trade investments sold at profit was credited to capital reserve
ĞͿ decided to value stock at cost, whereas previously the practice was to value stock at costless 10%. The
stock according to books on 31st march was 108,000 the stock on 31st march 2007 was 1,50,000 was
correctly valued at cost
Q.12 [2007] Prepare fund flow statement of DG & sons from the following .
Balance sheet of DG & sons as on 31st
dec, 2005 & 31st dec, 2006
[a] share capital
Equity share capital 300 320
7% Preference share of 100 each 100 50
Securities premium 20 17
Capital redemption reserve - 30
General reserve 80 60
Profit & loss a/c 60 75
2. Current liabilities 160 250
[a] short term provision
Proposed dividend 50 58
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Provision for taxation 30 40

TOTAL 800 900
II. ASSETS
[a] fixed assets
[i] tangible assets 600 680
Fixed assets [at cost ] (140) (180)
Less : depreciation 460 500
[b] non current investments 140 200

Investment at cost
2. Current assets
[a] inventories
110 100
Stock
[b] trade receivables 40 35
Receivables
[c] cash & cash equivalent 10 20
Cash
20 30
[d] short term loan and advances
Loans and advances
[e] other current assets 20 15
Preliminary expenses 800 900
TOTAL
Additional information
Ϳ Furniture costing ₹16000 (full depreciated) was written off.
Ϳ Tax due on profit estimated to be ₹34000.
Ϳ Old machine costing ₹25,000 (30% depreciated) sold for ₹20,000.
Ϳ Preference dividend along with 12% dividend on equity were paid for 2008.
Ϳ 500 preference shares were redeemed at 10% premium,2000 equity shares were issuedat 10%
premium and general reserve was utilized for redemption purpose.
Q.13 (2010) find out the funds from operation from the following data.Opening
balance of profit and loss a/c ₹60,000.
Closing balance of profit and loss a/c ₹30,000.
Written down value of motor car ₹14,000 which was sold for ₹18000. Purchase ofmachinery
₹20,000. Interim dividend paid ₹20,000. Proposed dividend
₹30,000.Depreciation ₹50,000.Preliminary expenses written off ₹1000.Loss on sale of machinery
₹3000. Transfer to reserve ₹5,000. Sinking fund ₹10,000. Salaries paid
₹3000, Tax paid ₹5,000.
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Q.14 [2015] You are given the following particulars relating to the year ended31.03.2015
Operating expenses Book 92,000 Operating revenue Issue of 1,52,000

value of assets soldPurchase 43,000 shares payment of dividend 56,000
of assets depreciation{included in
66,000 15,000
Loss on sale of assets expenses}
8,000 24,000
Redemption of debentures payment of tax
88,000
14,000
Prepare the fund flow statement for the year ended 31/3/2015
Q.15 [2006] From the following balance sheet of mother India ltd and additional
information prepare a statement of change in working capital andfund flow statement for the
year ended 31.12.05
Balance sheet of mother India ltd as on

Equity share capital 300,000 4,00,000
8% redeemable Preference share 150,000 1,00,000
Capital reserve General
- 20,000
reserve Profit & loss
40,000 50,000
a/c
30,000 48,000
Trade creditors 25,000 47,000
Bills payable 20,000 16,000
Provision for taxation
42,000 50,000
Proposed dividend
40,000 50,000
Liabilities for expenses
30,000 36,000
TOTAL 677,000 817,000
΀dǇƉĞŚĞƌĞ΁

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΀dǇƉĞŚĞƌĞ΁
ASSETS
II. Non-current assets
1. [a] fixed assets
΀ŝ΁ tangible assets
Land and building 200,000 170,000
Plant
80,000 200,000
΀ŝŝ΁ intangible assets
Goodwill
1,00,000 80,000
Investment
20,000 30,000
2. Current assets
΀Ă΁ inventories
Stock 77,000 109,000
Debtors 1,40,000 170,000
Receivables 20,000 30,000
΀Đ΁ cash & cash equivalent
bank
15,000 10,000
Cash
10,000 8,000
΀Ě΁ other current assets
Preliminary expenses
15,000 10,000
TOTAL 677,000 817000
Additional information
a piece of land was sold in 2005 and the profit on sale was credited in capitalreserve account.
was charged to plant
account
c) The investments are trade investment ₹3,000. By way of dividend is received including
₹1000/- from pre-acquisition profit which was credited toinvestment account.
d) An interim dividend of ₹20,000 has been paid in 2005
(
΀dǇƉĞŚĞƌĞ΁
99035 03989
Q.16 [2015] the condensed balance sheet of Boom ltd. As 31st march 2013 and2014 are
given below.

[a] share capital
share capital 400,000 500,000
. reserve & surplus - 20,000
general reserve 180,000 210,000
profit and loss account 70,000 90000
preliminary expenses [30,000] [20,000]
debentures 300,000 200,000
[a] trade payables
Trade creditors 1,30,000 120,000
Provision for income tax 80,000 60,000
Provision for dividend 40,000 50,000
11,70,000 12,30,000
TOTAL
II. ASSETS
[a] fixed assets
Fixed assets at cost 10,00,000 10,00,000
Less: depreciation [260,000] [310,000]
[b] investments 110,000 90,000
2. Current assets
Current assets [all] 3,20,000 4,50,000
TOTAL
11,70,000 12,30,000
During the year ended 31st March 2014 the company

a) sold one machine for ₹40,000 the cost of which was ₹80,000 and the depreciationprovided was ₹30,000
b) provide ₹1,00,000 as depreciation
c) redeem the debentures at ₹105
΀dǇƉĞŚĞƌĞ΁

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΀dǇƉĞŚĞƌĞ΁
d) sold some investment at a profit which was credited to capital reserve

e) decide to write off the fixed assets (fully depreciated) costing ₹20,000
f) decided to value opening stock at cost which was valued previously at cost less10% the opening stock
according to books was ₹63,000. The closing stock was correctly valued at cost.
Prepare statement of sources and application of funds for the year ended 31.03.2014showing changes in
working capital
Q.17 [2010] from the following figures information prepare a statement showing the application
and sources of funds during the year 2008-2009
balance sheet
Particulars 31.03.2008 31.03.2009

Shareholders fund
1.
share capital equity
share capital preference 300,000 350,000
΀ď΁ reserve & surplus 200,000 1,00,000
General reserve
΀Đ΁ 110,000 270,000
a) Long term borrowings
Debentures
100,000 200,000
3.
Current liabilities
[a] short term provision
Provision for taxation Provision 70,000 145,000
for doubtful debts 10,000 15,000
TOTAL
790,000 10,80,000
ASSETS
II.
Non-current assets
1. 5,10,000 620,000
[a] fixed assets net
[b]Noncurrent investments
Investments 30,000 80,000
2. Current assets 240,000 3,75,000

Discount on debentures
10,000 5,000
TOTAL 790,000 10,80,000
You are informed that during the year.

I) a machine costing ₹70,000 (book value ₹40,000) was disposed off for ₹25,000
II) preference share redemption was carried out at a premium of 5%.
III) dividend at 15% was paid on equity share for the year 2007-2007
΀dǇƉĞŚĞƌĞ΁

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΀dǇƉĞŚĞƌĞ΁
99035 03989
IV) the Provision for depreciation stood at ₹150,000 on 31.03.2008 and at ₹1,90,000on 31.03.2009.
V) stock which was valued at ₹90,000 as on 31.03.2008 was written up to its cost
₹100,000 for preparing the profit and loss account for 2008-2009
Q.18 [2014] summarized are the balance sheet of popular ltd. As on 31st march 2011,and 2012.
BALANCE SHEET
Particulars 2011 2012

[a] share capital 200,000 250,000
share capital equity
[b] reserve & surplus 50,000 60,000
General reserve
Profit and loss
a) Long term borrowings 30,500 30,600
bank loan
[a] short term provision 70,000
Provision for taxation

[b] trade payables
150,000 135,200
Creditors
30,000 35000
TOTAL
II. 510,800
530,500
1. ASSETS
Non-current assets
[a] fixed assets net
Tangible assets
200,000 190,000
Land and building
150,000 1,69,000
Machinery
Intangible assets
- 5000
Goodwill
2. Current assets 1,00,000 74,000
[a]Inventories
Stock
[b] trade receivables 64,200
80,000
Sundry debtors
[c] cash and cash eq.
Cash 500 600
Bank 800
TOTAL 530,500 510,800
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΀dǇƉĞŚĞƌĞ΁
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Additional information: during the year ended 31.03.12

(a) dividend of ₹23,000 was paid (b) assets of another company were purchased fora consideration of
₹50,000 payable in shares. The following assets were purchasedfor: stock ₹20,000; machinery ₹25,000 and
goodwill ₹5,000. (c) machinery was
further purchased for ₹8,000 (d) depreciation written off on machinery ₹12,000. (e) income tax provided
during the year ₹33,000. (f) loss on sale of Machine ₹200 was written off to general reserve. You are
required to prepare
a. Statement of changes in working capital
b. Statement of fund flow
Q.19 [2017] following are the assets and liabilities of flow ltd. As on 31.3.15and 31.3.16

[a] share capital
9% redeemable Preference share 200,000 3 ,00,000
Securities premium 40000 90,000
Revaluation reserve - 80,000
General reserve 120,000 1,80,000
Profit & loss a/c 230000 3,90,000
8% debentures 2,00,000 -
[a] trade payables 90,000 70,000
Trade creditors
[b] short term provision
TOTAL 12,40,000 17,00,000
II. ASSETS
[a] fixed assets
[i] tangible assets 500,000 580,000
Land 350,000 480,000
Other fixed assets
Investment 70,000 110,000
2. [a] Current assets
inventories 90,000 70,000
trade receivables 1,40,000 3,30,000
cash & cash equivalent 90,000 1,30,000
TOTAL 12,40,000 17,00,000
΀dǇƉĞŚĞƌĞ΁
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΀dǇƉĞŚĞƌĞ΁

99035 03989
Following further particulars for the year 2015-2016 are also given
(a) interim dividend on equity shares ₹50,000 and preference dividend ₹18,000 werepaid during the year.
Dividend distribution tax paid during the year ₹10,000
(b) debentures were redeemed at 10% premium, premium on redemption charges toprofit and loss for the
year. Debentures interest ₹12000 were also paid during the year.
(c) the company sold one fixed assets for ₹24,000 (WDV 35000) fixed assets
₹200,000 were acquired by issue of ₹8000 equity shares at 25% premium and balance by issue of
preference shares at par. Other equity shares were issued forcash during the year at a premium.
(d) interest on investment received ₹8000. Investment having book value ₹20,000were taken over by a
creditor against ₹20,000 due to him.
e) income tax paid during the year ₹68000
You are required to prepare fund flow statement for the year ended 31st March2016.
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Q.20 [2016] balance sheet of XY ltd as on 31st December 2014 and 2015are as under

[a] share capital
10% redeemable Preference share 300,000 2,00,000
Capital reserve 40000 60,000
General reserve - 50,000
Profit & loss a/c 360,000 54000
[a] trade payables
Trade creditors 88000 130,000
[b] short term provision
Provision for taxation 56000 64,000
Proposed dividend 54000 66,000
TOTAL
874,000 11,24,000
II. ASSETS
[a] fixed assets
[i] tangible assets
Land 200,000 150,000
Plant and machinery 180,000 382,000
Intangible
Goodwill 1,20,000 94,000
2. [b] non current investments
Investment 20000 70,000
[a] Current assets
inventories 170,000 1,56,000
trade receivables 150,000 2,16,000
cash & cash equivalent 34,000 56,000
TOTAL 12,40,000 17,00,000
The following further particulars are given :-
[i] in 2015 36,000 depreciation has been written off plant & machinery and nodepreciation has
been charged on land & building
[ii] a piece of land has been sold out & profit on such sale has been transferred tocapital reserve.
΀dǇƉĞŚĞƌĞ΁

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΀dǇƉĞŚĞƌĞ΁

99035 03989
[iii] a plant was sold for 24,000 [ W.D.V 30,000]
[iv] dividend received amounted to 4,200 which included pre- acquisition dividend of1,200.
[v] an interim dividend of 20,000 has been paid in 2015.You are

required to prepare :-
[i] statement of sources and application of funds
[ii] statement of changes in working capital for the year 2015.
Q.21 [2018] Calculate Fund from Operation before tax from the information givenbelow:
Cash from operation before tax Rs 92,000
Depreciation Rs 17,000
Interest paid Rs 10,000
Balances relating to current assets and liabilities are
Opening Closing
Debtors 15,000 13,000
Inventory 11,000 14,000
Accrued Expense 4,000 3,000
Creditors 3,000 7,000
Cash and Bank 12,000 9,000
Q.22 [2019] Calculate Fund from Operation from the information given below (figures in ₹):
Profit as per Profit & Loss Statement 1,82,000
Other items in Profit & Loss Statement:
Depreciation charged 25,000
Profit on sale of assets 12,000
Interest paid 10,000
Salary for the year 87,000
Q.23 [2020] Given below is the summary of assets and liabilities of Speed Ltd. as at31.03.2019 and
31.03.2020 (in ₹):
΀dǇƉĞŚĞƌĞ΁

΀dǇƉĞŚĞƌĞ΁

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Liabilities and equities 31.03.2019 31.03.2020

Rs Rs
Equity Share Capital (₹ 10 each fully paid)Balance of 4,00,000 4,80,000
Statement of Profit and Loss Long-term Borrowing 3,00,000 3,90,000
Trade Payables 3,80,000 3,40,000
Provision for Tax 1,70,000 1,25,000
50,000 55,000
Total 13,00,000 13,90,000
Assets 31.03.2019 31.03.2020

Rs Rs
Plant, Property and Equipment: TangibleStock in 7,00,000 8,00 ,000
trade 2,20,000 1,40,000
Trade Receivables 2,30,000 2,80,000
Cash and Bank 1,50,000 1,70,000
Total 13,00,000 13,90,000
;ĂͿ Tangible asset costing₹ 1,00,000 (accumulated depreciation₹ 70,000) was soldfor ₹ 42,000 and the
profit or loss transferred to Profit and Loss A/c. Depreciation charged during the year on tangible
assets was 1,10,000.
;ďͿ Income tax and Dividend paid during the year were ₹ 58,000 and 66,000 respectively.
You are required to prepare the Fund Flow Statement of Speed Ltd. for the yearended 31.03.2020.
Q .24 [2021] Complete the following statement showing increase or decrease in working capital:
Balance of current asset & 31.3.2020 31.3.2021 Effect of working capital

current liabilities Rs Rs Rs
Inventory 50,000 ? 8,000 (increase)
Trade receivable ? 28,600 7,900 (decrease)
Prepaid expenses ? 3,900 3,600 (increase)
Advance to suppliers 12,000 ? 2,700 (increase)
Cash & Bank 21,700 18,300 ?
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99035 03989
΀dǇƉĞŚĞƌĞ΁
Trade Payables ? 15,300 2,700 (increase)
Outstanding expenses 4,900 ? 400 (decrease)
Advance from Customers 7,600 NI ?
Working capital ? ? ---
Q.25 [2022] From the following information, calculate fund from operation of Exe Ltd.- Profit before
Tax (PBT) 2,40,000; Bad debt written off ₹12,000; Office expenses charged *37,000; Depreciation charged ₹32,000;
Provision for tax debited to Statement of Profit & Loss 44,000; Dividend paid $20,000; Profit on sale of asset credited
₹15,000 and Goodwill amortised ₹25,000.
΀dǇƉĞŚĞƌĞ΁

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Fund Flow Statement

Fund Flow Statement

PARTICULARS 31.12.94 31.12.95

I. EQUITY AND LIABILITIES

΀Ă΁ a statement of changes in working capital , and

΀ď΁ a statement of sources and application of funds

PARTICULARS 1990 1991

TOTAL 6,77,000 8,17,000

΀Đ΁ an interim dividend of Rs. 20,000 has been paid in 1991.

[1999]- from the following balance sheet of PM Ltd. :-

΀ŝ΁ a statement of changes in working capital ,

΀ŝŝ΁ a fund flow statement for the year 1998.

Q.3 BALANCE SHEET

PARTICULARS 31.12.1997 31.12.1998

Plant at WDV 15,00,000 18,00,000

c.cash & cash

TOTAL 38,00,000 36,00,000

PARTICULARS 31.03.98 31.03.99

During the year ended 31st march 1999 the company

΀ŝŝ΁ redeemed 30% of debentures @ Rs. 103.

PARTICULARS 31.03.2003 31.03.2004

[b] non current investments

΀ŝŝ΁ provided 1,80,000 as depreciation

΀ŝŝŝ΁ redeemed 30% of debentures @ 105

PARTICULARS 30.6.1999 30.6.2000

[b] non current investments

΀ď΁ the dividend proposed in last year was paid in 1999-2000.

΀Ğ΁ taxation liability for 1998-1999 were settled at 55,000.

PARTICULARS 31.3.02 31.3.03

Non current assets

΀ŝǀ΁ 6 % debentures were issued at 10 % discount

΀ǀŝ΁ interim dividend paid during the year 20,000.You are

΀ŝ΁ a statement showing changes in working capital

΀ŝŝ΁ a fund flow statement for the year ended 31.03.2003.

On 31.12.2005 Effect on working

PARTICULARS 2004 .2005

[a] long term borrowingslong

TOTAL 408,800 4,52,250

TOTAL 408,800 4,52,250

arising there from was written off.

Q.9 [2008]- From the particulars calculate fund from operations:

Profit & loss a/c as on: 01.04.06 1,60,000

PARTICULARS 2007 .2008

TOTAL 696,500 8,03,500

ĂͿ income tax paid on 2008 was ₹35,000.

PARTICULARS 31.3.06 31.3.2007

Unpaid dividend - 8000

Additional information during the year

ďͿ provided 190,000 as depreciation

ĐͿ redeemed 30% of the debentures @103

ĚͿ some trade investments sold at profit was credited to capital reserve

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Provision for taxation 30 40

[b] non current investments 140 200

Operating expenses Book 92,000 Operating revenue Issue of 1,52,000

I. EQUITY AND LIABILITIES

TOTAL 677,000 817,000

TOTAL 677,000 817000

PARTICULARS 2013 .2014

During the year ended 31st March 2014 the company

d) sold some investment at a profit which was credited to capital reserve

Particulars 31.03.2008 31.03.2009

I. EQUITY AND LIABILITIES