ROHIT D.

AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

1
Que. No. (28) Balance sheet:

Liabilities 2002 2003 Assets 2002 2003
Share capital 150000 170000 Fixed assets 255000 310000
General
Reserve
75000 100000 Investment 20000 35000
Premium on
shares
5000 10000 Current assets 120000 187500
Debentures 50000 90000 Discount on
debentures
2500 ---
P & L A/c. 30000 35000
Depreciation
Reserve
45000 65000
Provision for
doubtful debts
5000 7500
Unpaid
Expenses
500 1000
Current
Liabilities
37000 54000
397500 532500 397500 532500


Adjustments:
1) Dividend @ 15% was paid for 2002.
2) An asset costing Rs.20000 (Depreciation Provided Rs. 8500) was sold for 12500.
Prepare statement of changes in working capital and sources and application of fund and Fund
Flow Statement.







ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

2
Que. No. (29). From the following Balance Sheet of Anil & Co. Ltd. You are required to show any
increase or decrease in working capital and sources and applications thereof:
Balance Sheet
Liabilities As at 31-12-06 As at 31-12-07 Assets As at 31-12-06 As at 31-12-07
Equity share
capital
240000 360000 Land &
Building
166200 3396000
Share premium 24000 36000 Machinery 106800 153900
General
Reserve
18000 27000 Furniture 7200 4500
P&L A/c 58500 62400 Stock 66300 78000
8% Debentures ----- 78000 Debtors 109500 117300
Provision for
taxation
29400 32700 Bank 14400 12000
Creditors 100500 109200
470400 705300 470400 705300

Depreciation written off during the year:
On Machinery 38400
On Furniture 1200
Que .No. ( 30).
From the following balance sheet of S.M. Industries, Prepare a Fund Flow statement showing your
working clearly:
Balance Sheet
Liabilities L.Y. C.Y. Assets L.Y. C.Y.
Share Capital 60000 65000 Goodwill 30000 25000
P & L A/c. 34000 26000 Plant &
Machinery
60000 50000
Current
Liabilities
12000 3000 Current Assets 16000 19000
106000 94000 106000 94000

Additional Information:
a) Depreciation of Rs. 20000 on plant and machinery was charged to P&L a/c.
b) Dividend of Rs. 12000 were paid during the year.


ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

3
Que .No. (31)
From the particulars, prepare Fund Flow Statement:
Particulars Jan. 1 (Rs.) Dec. 31 (Rs.)
Cash 2000 1800
Debtors 17500 19200
Stock 12500 11000
Land 10000 15000
Building 25000 27500
Machinery 40000 43000
107000 117500
Creditors 18000 20500
Bank Loan (Long term) 15000 22500
Capital 74000 74500
107000 117500

During the year Drawings by the proprietor for personal use amounted to Rs.13000.
Provision for depreciation on machinery stood at Rs.13500 on Jan 1, and at Rs.18000 on Dec.31.

Que.No ( 32)
The following are the summarized Balance sheet of X ltd., on 31
st
Dec., 2006 and 2007.
Liabilities 2006 2007 Assets 2006 2007
Share capital 600000 800000 Plant &
Machinery (at
cost)
400000 645000
Debenture 200000 300000 Land &
Building (at
cost)
300000 400000
P & L A/c 125000 250000 Stock 300000 350000
Creditors 115000 90000 Bank 20000 40000
Provision for
bad & doubtful
debts
6000 3000 Preliminary
Exp.
7000 6000
Provision for
Depreciation:

On Land &
Building

On Plant &
Machinery




20000


30000




24000


35000
Debtors 69000 61000
1096000 1502000 1096000 1502000
ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

4

Additional Information:
a) During the year a part of machinery costing Rs. 70,000 (accumulated depreciation thereon
Rs.2000) was sold for Rs. 6,000.
b) Dividends of Rs.50000 were paid during the year.

You are required to ascertain:
a) Changes in working capital for 2007.
b) Fund flow statement.
Que.No. ( 33)
Following is the Balance sheet of a company.
Liabilities 2006 2007 Assets 2006 2007
Equity Capital 50000 53000 Cash 20000 25000
Long term debt 14000 13000 Account
Receivable
24000 27000
Retained
Earnings
28000 37000 Inventories 31000 32000
Accumulated
Depreciation
21000 25000 Other Current
Assets
8000 7000
Sundry
Creditors
20000 21000 Fixed Assets 50000 58000
133000 149000 133000 149000

Additional Information:
a) Fixed Assets costing R.s 12,000 were purchased during 2007 for cash.
b) Fixed Assets (original cost Rs.4,000 accumulated depreciation Rs. 1500) were sold at book value.
c) Depreciation for the year 2007 amounted to Rs.5,500 which has been debited to profit and loss
A/c.
d) During 2007, dividend paid Rs. 3,000.
You are required to prepare a statement of source and application of funds and fund flow statement.




ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

5
Que. No. ( 34)
From the following financial statement of XYZ ltd. Make out a statement of sources and application of
funds and schedule of changes in working capital:
Assets 2007 2006 Liabilities 2007 2006
Cash 50000 40000 Creditors 180000 125000
Debtors 30000 15000 5% Debentures 100000 200000
Stocks 100000 80000 Equity 200000 100000
Investments(short
term)
120000 50000 P&L A/c 20000 -----
Fixed assets 200000 200000
P&L A/c ----- 40000
500000 425000 500000 425000


Provision for depreciation on the last day of 2006 was Rs. 50,000. The same on the last day
of 2007 was Rs. 60,000. During the year 2007 a machine costing Rs.30000 (Depreciation Rs. 10,000)
was sold for Rs. 16,000.


Que. No. (35) The following is the summarized Balance Sheet of a Limited Company as at 31
st

December, 2006 and 31
st
December 2007.
Balance Sheet
Liabilities 2006 2007 Assets 2006 2007
Sundry
Creditors
39500 41135 Cash At Bank 2500 2700
Bills Payable 33780 11525 Sundry
Debtors
85175 76625
Bank Overdraft 59510 ----- Sundry
Advances
2315 735
Provision For
Taxation.
40000 50000 Stock 111040 97370
Reserves 50000 50000 Land and
Buildings
148500 144250
P & L A/c 39690 41220 Plant and
Machinery
112950 116200
Share Capital 200000 260000 Goodwill ----- 2000
462480 453880 462480 453880


ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

6
The following Additional Information is obtained from the general ledger:-
(1) During the year ended 31
st
December, 2007, an Interim dividend of Rs. 26,000 was paid.
(2) The assets of another company were purchased for Rs. 60000 payable in fully paid shares of the
company. These assets consisted of stock Rs.21640, Machinery Rs. 18360 and goodwill Rs.
20000. In addition sundry purchases of plant were made totaling Rs. 5650.
(3) Income tax paid during the year amounted to Rs. 25000.
(4) The net profit for the year before tax was Rs.62530.
You are required to prepare a statement showing the sources and applications of funds for the year 2007
and a schedule setting out changes in working capital.

Que. No. (36) The following is the Balance Sheet of a company as on 31
st
December 2006 and 2007.
Liabilities 2006 2007 Assets 2006 2007
Sundry
Creditors
103000 96000 Cash at Bank 50000 40000
Outstanding
Expenses
13000 22000 Debtors 77000 73000
5% Debentures 90000 70000 Short Term
Investment.
110000 84000
Depreciation
Fund
40000 44000 Prepaid
Expenses
1000 2000
Reserve for
contingencies.
60000 50000 Stock 92000 106000
P & L A/c 16000 23000 Building 100000 100000
Share capital 180000 180000 Machinery 72000 80000
502000 485000 502000 485000

The following information concerning the transactions is available:--
(1) 10% dividend was paid in cash.
(2) New machinery for Rs. 20000 was purchased but old machinery costing Rs.12000 was sold for
Rs. 4000, accumulated depreciation was Rs. 6000.
(3) 5% Debentures amounting to Rs. 20000 were redeemed by purchase from open market @ Rs.96
for debenture of Rs.100.
(4) Rs. 10000 was debited to Contingency Reserve for settlement of previous tax liability.
(5) Rs. 26000 investments were sold at Book Value.
Prepare a Fund Flow Statement.

ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

7
Que. No. (37) Following figures appears in the books of TATA Engg. Ltd., for the years 31
st
March
1997 and 31
st
March 1998:-
Balance Sheet
Liabilities 31-03-1998 31-03-1997 Assets 31-03-1998 31-03-1997
Share Capital 400000 360000 Fixed Assets
Less:
Depreciation
520000
(140000)
480000
(108000)
General
Reserve
60000 110000 380000 3720000
Creditors 195350 133650 Investment 50000 100000
P & L A/c 33450 20450 Stock 90500 55600
Proposed
Dividend.
15000 28800 Debtors 167800 118300
Tax Provision 32000 50000 Cash and Bank 47500 49800
Opening
Expenses.
----- 7200
735800 702900 735800 702900


Additional Information:
(1) Profit for the current year (Depreciation Rs. 40000, write off of Opening Exp. Rs.7200, Provision
for Tax Rs. 32000. These provisions were made) Rs.38000.
(2) During the year company sold out the machinery costing Rs. 9000 for Rs.3000, on which the
Depreciation Reserve was Rs. 8000.
(3) Investment costing Rs. 50000 was not in use (worthless) is transferred to General Reserve.
(4) Mid term dividend of Rs.10000 declared during the year and Rs. 15000 as final dividend is
proposed.
Prepare Fund Flow Statement.

Que. No. (38) From the Balance Sheet given below prepare Fund Flow Statement.
Balance Sheet
Liabilities 1990 1991 Assets 1990 1991
Equity Share
Capital
300000 350000 Fixed Assets 510000 620000
9% Preference
Share Capital
200000 100000 Investments 30000 80000
Debenture 100000 270000 Current Assets 240000 375000
P & L A/c 110000 270000 Discount on 10000 5000
ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

8
Debenture
Provision for
Bad &
Doubtful Debt.
10000 15000
Current
Liability
70000 145000
790000 108000 790000 108000

Adjustments:-
(1) Preference share were redeemable at premium of 5% during the year 1991.
(2) Dividend at 15% on Equity share for the year 1990 and preference share dividend for the year
1991 were paid in the year 1991.
(3) The provision for Depreciation was Rs. 150000 and Rs. 190000 for the year 1990 and 1991
respectively.
(4) A machine costing Rs. 70000, depreciation charged Rs. 30000 was disposed off for Rs. 25000.

Prepare Fund Flow Statement (Show your working notes clearly.
Que. No. (39) From the following balance as at 31
st
December 2000 and 2001, prepare a statement
showing changes in working capital and Fund Flow Statement.
Liabilities 2000 2001 Assets 2000 2001
Share Capital 200000 300000 Building at cost 150000 230000
Share
Premium
------ 10000
Capital
Reserve (profit
on
Redemption of
Debentures)
------ 1000 Plant and
Machinery at cost
Less:Depreciation
260000

(85000)
320000

(95000)
Balance b/f 40000 40000 175000 225000
Profit for the
year
------ 45000 Shares in
Subsidiary
Company.
20000 20000
5%
Debentures
100000 75000 Stock 45000 49000
Sundry
Creditors
60000 104000 Sundry Debtors 15000 18000
Taxation
Account
20000 5000 Bank 25000 48000
Proposed
Dividends.
10000 10000

430000 590000 430000 590000
ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

9


























ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

10


























ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

11


























ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

12


























ROHIT D. AKOLKARS
NARMADA MANAGEMENT AND COMMERCE CLASSES
(+91-9763261738)


VENUE:RAM MANDIR HALL, SURVEY NO. 135, MOHAN NAGAR, CHINCHWAD STATION

13