Financial Reporting and Financial Statement Analysis (Hons.) eo Fund Flow Statement For the year ended © Particulars ‘Amount | Particulars Amount ¢ Tssue of Shares (both Equity/ Purchase of Fixed Assets fer » eas renee ues b) Purchase of Investments i eee s+ | c)_ Redemption of Preference Shares eae ey se¢ | d) Redemption of Debentures le se |e) Repayment of Long term Loan e) Sale of Investment se |) Payment of toxes™™ f) Fund from operation see |g) Payment of Dividend** Fund depleted from operation Intermin dividend paid Increase in working capital Non-trading Income 1) Dividend 2) Rent etc. fh) Decrease in working capital = There is a controversy regarding the treatment these are treated as current liabilities then these are treated as appropriation of Profit then payme! the Fund Flow statement as application of Fund. | Theoretical Questions | A. Short Essay Type ‘State why the preparation of a ‘Fund Flow Statement’ is necessary. Is depreciation a source of fund? Justify your answer? Distinguish between fund flow statement and income statement. Flow Statement and a Cash Flow Statement. Distinguish between a Fund White » short note on the concept of ‘Fund’ in Fund Flow Analysis. Is depreciation a source of fund? Justify "Depreciation is not a source of Fund" — | Practical Problems | your view. Explain it critically. eee ee Medium Type id From operation ; the following particulars calculate Fund from Operations : : 60,000 P&L A/c : as on 01.04.21 Hee as on 31.03.22 ,00,( Transactions during the year : _ Transfer to Revenue Reserve sae Depreciation on fixed assets om Underwriting Commission Written off ae Interest Received ‘of Provision for Taxation and Proposed Dividend. If will not come in Fund Flow Statement, but if these int of taxes and payment of dividend will comes in [1983] [1984,86,2012] [1991] (1994,99] [2006] [2007] (2009]B.Com, Scroller - SEM-VI 3 a Interim Dividend paid 16,000 Sale of old Machinery (Book value & 48,000) 56,000 (2008) ys. Fund from operation 7 1,08,000] Find out the funds from operation from the following data : Opening balance of Profit & Loss A/c — & 60,000 Closing balance of Profit & Loss A/c — % 30,000 Written down value of the motor car & 14,000 which was sold for & 18,000, Purchase of machinery ¥ 20,000, Interim dividend paid % 20,000, Proposed dividend % 30,000, Depreciation % 50,000, Preliminary expenses written off € 1,000, Loss on Sale of Machinery & 3,000, Transfer to Reserve 5,000, Sinking Fund & 10,000, Salaries paid & 3,000 Tax paid & 5,000. (2010) {Ans. Fund from operation # 90,000.] : (Hints: Purchase of Machienry and Payment of Salaries are not consider in the computation of Fund from tion.) G /) From the following particulars calculate Fund from operation : z Profit & Loss Account: as on 1.4.21 ... 1,60,000 as on 313.22 ... 2,00,000 Transaction during the year Transfer to Revenue Reserve 40,000 Depreciation on Fixed Assets 16,000 Under writing Commission written off 8,000 Interest Received 4,000 Interim Dividend Paid 16,000 Sale of Old Machinery (Book value % 48,000) 56,000 [Ans.: Fund from operation ® 1,08,000.] [2013] 4. Calculate Fund from Operation before tax from the information given below: Cash from operation before tax 92,000 Depreciation charged % 17,000 Interest paid % 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 29,000 Fund from operation 790,000.) [2018] EN cars 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 asset 12,000: Interest paid 10,000 Salary for the year 87,000 [2019] [Ans. Fund from operation # 2,05,000.]Fr OSES 3 Financial Reporting and Financial Statement Analysis (Hons. a) Oc of Changes in Working Capital 6 ‘The Statement of Change in Working Capital of K. Ltd. for the year ended 31st December 2021 showed the following information: - On 31.12.2021 Effect on Working Capital zg z Debtors 40,000 15,000 (~) Increase ‘stock 60,000 Nil - Bills Receivable 55,000 10,000 G) Decrease Creditors 47,000 12,000 (4) __Increase (sis Payable 16,000 5,000 -) Decrease Calculate the value of the aforesaid current assets and liabilities on 31.12.2020. [2006] i, of eee + £25,000; Stock 0,000; Bills receivable 65,000; Creditors 759,000 and Bills Payable 1 paration of Fund Flow Statement 7, ) You are given the following particulars relating to the year ended 31.03.2022 (in %): Operating Expenses 92,000 Operating Revenue 1,52,000. Book value of assets sold 43,000 Issue of shares 56,000 Purchase of assets 66,000 Payment of Dividend 15,000 Loss on sale of assets 8,000 Depreciation (included 24,000 in expenses) Redemption of Debenture 88,000 Payment of tax 14,000 Perpare the Fund Flow Statement for the year ‘ended 31.03.2022, © [2015] [Ans.Total of Fund Flow Statement & 1,83,000; Fund from Operation & 84,000 [Hints: Calculation of Fund from Operation : Operating Revenue 1,52,000 Less : Operating Expenses em Operating Profit , ‘Add: Depreciation 24,000 Fund from Operation 84.000) B. Essay Type Fund Flow Statement is to be prepared after digging out the hidden information 1. From the following summarised financial statements of Arthur Eid. as on 3st December, 2020 and Blut Decorabor 2021, respectively prepare; (a) a statement of changes in working capital, during the year 2021, and (b) a statement showing the sources ‘and application of funds during the same period. Particulars NoteNo.| 31.1220] 91.12.21 ef z |. EQUITY AND LIABILITIES = 1. Shareholders’ Funds: (a) Share Capital (Equity Share Capital) , sen0%0 « coon (b) Surplus 00, a 2. Non-current Liabilities « (a) Long term Borrowings (10% Debentures) Pay) TENT 3. Current Liabilities : (a) Trade Payables (Sundry Creditors) _3.500001 Total 2 —3.10,000 Scroller 6th Semester 005‘3 __ BCom, Scroller - SEM-VI _ gq (a) Property, Plant and Equi 2 625,000] 6,94, 2, Reps Penta Espn ingest om (a) Inventories 3.20000 3:90) (b) Trade Receivables (Debtors) 3,00,000| 250,09 () Cash and Cash Equivalents (Cash) 5.000) —_ 26.009 __ Total | ____ 2.80.90) 18.20,609 Notes to Accounts P —giaz20[ 32a Particulars = g| it 1. Surplus : ~~ | _ (a) Securities Premium -| 20m (0) Revenue Reserve 0,000, 12000 (c)_ Balance in Statement of Profit & Loss 1.20000) _1.6000) . 2,00,000 3,00.m) 2. Property Plant and Equipment - Tangible. Assets: | {a) Freehold Land and Building at cost 3,00,000/ 3.00000 (b) Machinery at cost 600000) som Less. Depreciation 3,00,000' 3200 3,00,000| 3,60,00 (c) Furniture atcost 40,000 s0ger Less. Depreciation 15,000) 1600 25,000) _ 34 Total (a + b+c) 6,25,000| 6,940 jAns. Increase in Working Copital @ 31,000; Total of Fund Flow Statement & 2,21,000; Fund From Tris ‘Operations ¢ 1,01,000; Net profit ¢ 80,000.) [Hints. Net Profit = Balance of Statement of Statement of P & Las on 31.12.21 + Amount appropriated for profit—Balance as on 31.12.20 & (1,60,000. + 40,000 - 1,26,000) = 2 80,000.) Depreciation for the year and dividend paid during the year are given. Fund Flow after digging out the hidden information ment is to be prepared 2.) From the following summarised financial staternents of Anxious Ltd. as at 30.4.20 and 3042! rent of changes in working capital during the year ended 30.4.21 and (b) stant prepare, (a) statem Showing sources and applications of fund during the same period. Particulars Note No. soa.an20 | saan z 1 EQUITY AND LIABILITIES : Tr 1. Shareholders’ ont (a)Share Capital 10,00,000 L ‘a (b)Surpus 1 7.00000) So 2.Non-Current Liabilities 5,00,000 | a (a) Long-term Borrowings (Debentures) 3. Current Liabilities : or (a) Trade payables (Sundry Creditors ) _9,00,000 To Total 31,00,000 aa ‘nancial Reporting and Financial Statement Analysis (Hons.) 11, ASSETS: | 1.Non-current Assets : (a) Property, Plant and Equipment (Net) 20,50,000 (b)_Non-curentinvestments (vestments voor | 250.000 2. Current Assets : " : (a) Inventories ),000 | 7,00,000 (b) Trade Receivables (Debtors) econ 6,40,000 (c)_ Cash and Cash Equivalents (Cash) ‘15,000 | ___10,000 ee 31,00,000 | 36,50,000 Notes to Accounts : a) 30.04.2020 | 30.04.2021 — z z 1. Surplus : | (a)General Reserve! 5,00,000 | 6,00,000 (b)Balance in Statement of Profit & tos) 2,900,000 | _3,00,000 7.90,000 | _9,00,000 During the year ended 30.4.21. Depreciation charged on fixed assets amounted to ® 2,00,000. The final dividend for the year 30.4.20. amounting to @ 1,00,000 was paid on 8.1.21, Proposed Dividend for the eyar 2020-21 & 1,50,000 [1982] [Ans. Increase in Working Capital ¢ 1,00,000; Total of Fund Flow Statement ¢ 7,00,000; Fund from Trading Operation * 5,00,000; Net Profit © 3,00,000.] [Hints. 1, N.P= Balance of Statement of P&L as on 30.4.21 + Transferred to General Reserve + Dividend paid- Ralance of Statement of Profit & Loss as on 30.4.20 = & (3,00,000 + 1,00,000 + 1,00,000 - 2,00,000 ) = % 3,00,000. 2. Operating Profit = N.P. + Dividend paid + Depreciation on Fixed Assets = © 2,00,000 + % 1,00,000 + % 2,00,000 = & 5,00,000] From the following summarised financial statements of Abee Ltd. as at 31st December 2020 and 3st December 2021, respectively. Prepare (i) a statement of charges in working capital during the calendar year 2021 and (ii) a statement showing sources and application of fund during the same ___Petiod : Particulars: NoteNo.| 31.12.20/ 31.12.21 z z | EQUITY AND LIABILITIES : 1. Shareholders’ Funds : (a) ShareCapital 7 15,00,000 | 20,00,000 (b) Surplus 1 10,60,300 | 13,90,640 2. Non-current Liabilities : (a) Long-term Borrowings (Secured Loan) ~~ 3. Current Liabilities : 860,000} —_8,60,000 (a) Trade Payables (Sundry Creditors) —11,29,700 | _12,39,360 » Total sabi 46,00,000 | 54.90.000 UL assets: 1. Non-current Assets : (a) Property, Plant and Equipment - Tangible Assets“ 2 27,05,000| 30,60,400 (0) Non-current Investments ~ 50,000 75,600 2 Current Assets | (a) Inventories (stock- in - trade) 840,430) 9.16340 (b) Trade Receivables [(Book Debts considered good) ] 5 9.85370! 13,68.650< Soohe) Cash Equialens (C (Cash and Bank Balances) Notes to Accounts: a) Lang °D) Bullcing (a: cos less depreciation) ©) Plantand Machinery (at cos less depreciation) z i = 30.000 Plant and Machinery 2,40,500 The nal Dividend for the year 2020 amounting to @ 1,00,000 was paid on 8th July. 2021. Proposed Devidend for the year 2021 % 1,50,000. (1983) I Copital 7 4.49,340; Total of Fund Flow Statement ¥ 12,00,840: Fund from Troding Operations 7 6,50.840; Net Profit % 3,80,340.] i P. = @ (6.40.640 + 1,00,000 +1,00,000 — 4,60,300) = % 3,80,340. Amount received on issue of share = & (20,00,000 - © 15,00,000 + % 50,000) = = 5.50,000. Redemption of Preference shares, Sale of Plant at a profit, Proposed dividend etc. areB.Com. Scroller - SEM-VI Balance Sheets of XYZ Ltd. ~Paiculars = Note No] EQUITY ANDLIABILITIES: —— = 1. Shareholders’ Funds (a) Share Capital Ww (b) Surplus 1 2. Non-current Liabilities : 3. Current Liabilities : (a) Trade Payables (Sundry Creditors) ‘Total | Il, ASSETS: | 1, Non-current Assets : (a) Property, Plant and Equip a) — (b) Non-current investments (©) ‘ 50,000 2, Current Assets : (a) Inventories (stock- in - trade) aacnan 1,40,000 (b) Trade Receivables (Debtors) | \ 38.000 (c)Cash and Cash Equivalents (cash) 3.000) __2.000 Total 5.83,000| 7.00000 Notes to Accounts : Particulars 30.620| 30.621 . : ' 1. Surplus : {al General Reserve (2) 100,000) 1.20000 (b) Same insiere of Prot Loss) 40,000 8 60,000 (2) PreiminayExvenses (7) Fe_137,0001) 8y 130.000 1,03.000| 1.50.00 30.620, depreciation charged on fixed assets amounted to @ 50,000. The fil paid on 10.2.21. Proposed Dividend (1986) fal of Fund Flow Statement & 1,57,000; Fund from Trang * During the year ended dividend for the year ended 30.6.21, amounting to ¥ 20,000 was for the year 2020-21 & 30,000. [Ans. Increase in Working Capital # 17,000; Tot ‘Operations 7 1,17,000; Net Profit * 60,000.] [Hints Assume preliminary Expenses is written off against Statement of Profit & Loss.] Sale of Building and Plant, dividend from Pre-acquisition profit, writing of intangible assets etc. are there om the following Balance Sheets of Beter Ltd., prepare (i) Fund Flow Statement and (ii) Statemet" ‘of changes in working capital Balance Sheets of Beta Ltd. Particulars 1. EQUITY AND LIABILITIES: 1 Shareholders’ Funds : (a) Share Capital (6) Surpluswa & Financi o—— _Financial Reporting and Financial Statement Analysis (Hons.) @ 2.Current Liabilities : — (a) Trade Payables 63000 (b) Other Curent Liabilities (Liability for Expenses) o ae 36,000 (c) Short - term Provisions (Provision for Taxation tb) 40,000} 50,000 be 6,62,000| 80,7000 rf : 1.Non-current Assets : (a) Property, Plant and Equipment (i) Tangible Assets A 280000| 370,000 (i) Intangible Assets (Goodwill) 1,00,000 ‘80,000 ‘2. Current Assets : {a) Current Investment [Investment (trade)] 20,000 30,000 {b) Inventories (stock) 77,000 1,09,000 (c} Trade Receivables 5 1,60,000] —2,00,000 (d) Cash and Cash Equivalents 6 18, Total 662,000] _ 8,07.000 Notes to Accounts : Particulars 2020 (?) 2021(%) T. Share Capital Z (i) Subscribed and fully (a) Equity Share Capital 3,00,000 4,00,000 {b) 15% Red Pref. Share Capital ‘2 Surplus : (a) Capital Reserve (b) General Reserve / (y re —(¢) Balance in Statement of Profit & Loss |) (a) Preliminary Beemer’) Total 3. Trade Payable : 25,000 47,000 (a) Sundry Creditors 20,000 16.000 (b) Bills Payable 45,000 63.000 4. Property, Plant and Equipment - Tangible Assets: 200,00] 1,70.000 (2) Building 3) 80,000} _2,00.000 (b) Plant 2,80,000 | —3.70.000 5. Trade Receivables : 1,40,000 1,70,000 (a) Sundry Debtors 20,000} — __30,000 (b) BilsReceivable 1.60.00} 2,00,000 © Cash and Cash Equivalents : 15,000 10,000 () Cash in hand 10,000 —8.000 (b) Cash at Bank ___|__ 25,000; _ 18.000 Additional Information :- has been credited to Capital Reserve ti rofit on sale has serve, (2) Abuiling hasbeen sold outin 2021 ae nse ofthe plant was 912,000. Depreciation (}) Plant has been sold for & 10,000. of ® 10,000 is charged on Plant account in 2021.© B.Com. Scroller - SEM-VI Gg {c) © 3,000 by way of dividend is received on Trade Tronment le includes © 1,000 from pre. acquisition profit which has been credited to Investment Account. (2) An interim dividend of & 20,000 has been paid in 2021. (2) (e) Intangible assets are written off against General Reserve. 7 a ') Proposed Dividend for the year 2020 amounting to & 42,000 was paid in 2021 in addition to interim Dividend. Propsed Dividend for the year 2021 % 50,000. 11988, 2006) [Ans. Increase in Working Capital ¥ 41,000; Total of Fund Flow Statement € 3,46,000; Fund from Trading Operations ¥ 1,83,000; Net Proft 71,73,0001] (Hints. (i) Purchase of Investment = ~ Balance as on 31.12.21 ® (20,000 - 1,000 - 30,000) = & 11,000, (ii) Amount transfer to Statement of Profit Loss rom General Reserve % (40,000 - 20,000 - 5,000 - 50,000) = ¥ 35,000.) 7. From the following Balance Sheet of Mother India Ltd. and additional information prepare a statement of Changes in Working Capital and Fund Flow Statement for the year ended 31.12.21 : Balance Sheet of Mother India Ltd. as on... Particulars ] Note No. Balance of Inv. as on 31.12.20 - Divi. received out of pre-acquisition Profit 2020 2021 @ (?)_——— fd Financial Reporting and Financial Statement Analysis (Hons.) @ oo ene een mem {¢) Balance in Statement of Profit & Loss Total 4, Trade Payables : {a) Sundry Creditors (b) Bils Payable 4, Property Plant and Equipment - Tangible Assets : (a) Land & Building (b) Prant 5, Trade Receivables : (a} Debtors (b) Bils Receivable 6, Cash and Cash Equivalents : 57.000 __88,000 97.000 | 158,000 25,000! 47,000 20,000) _16.000 45,000} 63,000 2,00,000 | 1,70,000 —80.000 | _2,00,000 2,80,000 | 3,70,000 1,40,000 170,000, 20.000 __30,000 160,000 _2,00,000 {a) Cash 10,000 | 8,000 {b) Bank | | 10,000 | -25,000 | ___18.000 ‘Additional Information: (a) A piece of land was sold in 2021 and the profit on sale was credited to Capital Reserve A/c. () Amachine (WD.V. 12,000) was sold for % 10,000/-. In 2021 depreciaticn 710,000/- was charged to Plant A/c. (c) The investments are Trade Investment % 3,000/- by way of dividend is received including 71,000/ - from preacquisition profit which was credited to Investment Alc. (@) An interim dividend of %20,000/- has been paid in 2021 (@) Proposed dividend for the year 2020 amounting to ® 42,000 was paid in 2021 in addition to interim dividend. Proposed Dividend for the year 2021 & 50,000, (2006) (Ans, Increase in working capital 41,000; Fund from operation & 1,83,000; Total of Fund Flow Statement 8. The Balance Sheets of XY Ltd. as on 31st December 2020 and 2021 are as under : (Uneeas Purchase of Plant € 1,42,000; Sale of Building 7 50.000.] Equity and Libailities 1. Shareholders’ Fund : Share Capital - | Giipenysen ca) o 10% Redeemable Preference Shares (b). Surplus ; General Reserve 3 Capital Reserve Profit and Loss 0 2. Non-Current Liabilities : 3. Current Liabilities = Trade Payable Provision for "axation(5) Assets : 1. Non-Current Asse! 4 31.12.20 | 31.12.21 ) @) 3,00,000 | 5,00,000 3,00,000 2,00,000 40,000 | 60,000 =| 50,000 90,000 | 1,20,000 a] . 88,000 1,30,000 56.000} __64,000 8,74.000 | 11.24.0009& B.Com. Scroller - SEM-VI (i) Property, Plant and Equipment J ~N (a) Tangible : To , Land and Building ( 2,00,000) 3 Plant and Machinery Q 1,80,009/ 54g, (b) Intangible + 829, Goodwill ) 7 10 (ii) Non-Current Investment 20.00] Sq, 2. Current Assets 709, Inventory 1 70,000 | 1 Trade Receivables 150,009) 255m Cash and Cash Equivalent 7 | 34.009 | 16.5 7 : 824.000] i134 The following further particulars are given: a (i) In 2021, % 36,000 depreciation has been wr charged on Land and Building. (ii) A piece of land has been sold out and Profit on such (iii) A plant eye for % 24,000 (W.D.V. & 30,000). (iv) Dividend ree ivedamounted to % 4,200 which included pre-acquisition dividend of @ 1,200, (©) An interim dividend of & 20,000 has been paid 2021 (vi) Proposed Dividend for the year 2020 amounting to & 5¢ dividend. Proposed Dividend for the year 2021 8 66,000 You are required to prepare : (a)_ Statement of Sources and Application of Funds, and () Statement of Charges in Working Capital for the year 2021. iten off on Plant and Machinery and no depreciation a ba, sale has been transferred to Capital Reserve eC Following are the liabilities and assets of Andhra Ltd. as on 31.03.2021 and 31.03.2022. Particulars: ] 31.03.21 ] 31.0322 4 z a EQUITY AND LIABILITIES: ] 1. Shareholders’ Funds: ® (2) Equity Share of 10 each fully paid 8.00.00 | so,0n0m0 (b) Surplus Securities Premium 1,00,000| 12000 General Reserve (J) Profit and Loss balance 2. Non-Current Lisbilitie 3,60,000 | 4,40.000 2,20,000| 2.96000 Bank Loan 4,20,000 | 4.60.00 3. Current Liabilities : | TradePayable 166000 2.1600 Provision for tax (‘© — 200,000) _ 210.00 Total 22,66,000 | 27.42.000 ll. ASSETS: | 1. Non-Current Assets: (a) Property, Plant and Equipment Tangible. ) 17,00,000 | 20,60.000 (b) Non-current investment (> 96,000 | 1.24000 , aiaFinancial Reporting and Financial Statement Analysis (Hons.) «3 2, Current Assets: Inventories 2,40,000 2,80,000 Trade Receivables 1,60,000 | 1,90,000 Cash and Cash Equivalents _70,000| ___88,000 Total 22,66,000 | _27.42,000 Following further particulars for the year 20: {i) Dividend paid during the year ® 75,000(2, {i) The company sold part of the fixed asset for ® 24,000 (W.D.V ¥ 20,000). Depreciation charged on fixed assets during the year © 1,40,000, (ii) Investment costing € 16,000 were sold during the year for € 19,000. {iv) Interest on Investment received € 7,000 and credited to Profit & Loss Account. a) {v) Interest accrued and paid during the year on Bank Loan ® 24,000. (| (vi) Income Tax provided during the year % 1,98,000 You are required to prepare : (a) The schedule of changes in working capital from 31.03.2021 to 31.03.2022,,and (b) The Fund Flow Statement of Andhra Lid. for the year ended 31.03.2022 (2019) [Ans. Increase in working capital %38,000; Total of Fund Flow Statement %8,89,000; Purchase of fixed Assets 15,20,000; Purchase of Investment #14,000; Payment of Tax #1,88,000; Fund from operation %,79,000] 1022 are also given : Issue of shares as purchase consideration, change in the method of depreciation, issue of Debenture, income tax and interim dividend paid etc. are there 10. From the following Balance Sheets of Sundries Ltd., prepare (i) Statement of changes in working capital and (ii) Fund flow Statement : _ Particulars Note No. 2020 | 2021 L_ EQUITY AND LIABILITIES : z z 1. Shareholders’ Funds : (a) Share Capital 20,000 27,500 (b) Surplus 1 5300 6.500 2.Non-Current Liabilities : (a) Long-term Borrowings (6% Debentures) 5,00 10,000 3. Current Liabilities : (a) Trade Payable 2 6200 9,750 (0) Other Current Liabiltes (Undaimed Dividend) 300 250 (c) Short-term Provisions (Provision for Tax) 2.500 3.500 Total -39.500 57,500 I ASSETS : 1.Non-Current Assets : (a) Property, Plant and Equipment 3 16500 32,500 (ii) Intangible Assets (Goodwill) 3500 2,500 (b) Other Non-Current Asset (Discount on issue of Shares) = 500 2. Current Assets : (a) Inventories (Stock) 10,000 11,500 (b) Trade Receivables 4 7250 | 7700 (c) Cash and Cash Equivalents (Cash at Bank) 2.250 _ 2800 _ 32500| 57.500EEE ESSIEN, ETOpOsed\ for the year 2021 % 20,000. © You are required to prepare—{i) Schi <€ of changes in working capital, and (ii) Fund Flow Statement. (Ans. Increase in Working Capital 7 59,550; Operation # 1,42,05 ul {1991} Total of Fund Flow Statement % 2,46,550; Fund from Trading 0; Net Profit * 1,10,550.) ints. It is assumed that interim dividend was declared on total equity share capital just after fresh issue, (i) The working under accounts method can be tried on the basis of previous yeats’ solution.} (2 rer Fund Flow Statement’ of DG & Sons Ltd from the following : Balance sheets of DG & Sons Ltd as on 31st Dec. 2020 & 31st Dec. 2021. (8000s) Particulars lee 31.12.20 ] 31.12.21 z| z L. EQUITY AND LIABILITIES ; | 1. Shareholders’ Funds : \ (a) Share Capital 1 400 310 (b) Surplus 2 190 25 2. Current Liabilities : (a) Trade Payables 160 250 (b) Short-term Provisions (Provision for Taxation) 30 40 Total 780 | 885 IL ASSETS: \ 1. Non-current Assets : | (a) Property, Plant and Equipment ee) 3 . 460 | 500 (b) Non-current Investment (Trade Investment 140 20 AdFinancial Reporting and Financial Statement Analysis (Hons.) © - ee ee > 2. Current Assets : (a) Inventories 10 100 (b) Trade Receivables (Receivables) 0 = (c) Cash and Cash Equivalents(Cash at Bank) [ (€) Short-term Loans & Advances —20 —0 Total _ —780 885 Notes to Accounts : (@" in’ 000s) ——Farticciars 31.12.20 | 31.12.21 z ~~". Share Capital : (i Subscribed and fully paid up: (a) Equity Share Capital of 2 10 each © (b) 7% Preference Share Capital @ & 100 each()_) z 300 —100 400 ‘2 Surplus: (a) Securities Premium 3 20 (b) Capital Redemption Reserve - (c) General Reserve S~ ' 2 o (@) Balance in Statement of Proft& Loss L¢s}-—~ 90 18 (e) Preliminary Expenses ¢ Te (20) 190 3. Property, Plant and Equipment -Tangible Assets : (a) Fixed Assets at cost 600 680 (b) Less : Accumulated Depreciation S149 | 7.180 460 -500 Additional Information available the year 2021 : (i) Furniture costing & 16,000 (fully depreciated) was written off. (ii) Tax due on profit estimated to be % 34,000 (iii) Old machine costing % 25,000 (30% depreciated) sold for % 20,000. (iv) Preference dividend along with 12% dividend on equity were paid for 2020. @ (v) 500 Preference Shares were redeemed at 10% Premium, 2000 equity shares Were issued at 10% premium and general reserve was utilised for redemption purpose. (vi) Proposed Dividend for the year 2020 amounting to % 50,000 was paid in 2021 in addition to interim dividend. Proposed Dividend for the year 2021 € sa0oyil) (2007) lAns. Decrease in working capital. ¢ 85,000; Total of Fund Flow, Statement~®3,03,000; Fund from operation * _ ‘1,76,000; payment of tax € 24,000) ( 18, Prepare a Fund Flow Statement of Y Ltd. from the following : Particulars Note No. 91.12.2020 | 31.12.2021 z zg L EQUITY AND LIABILITIES : 1. Shareholders’ (a) Share Capital (2. 6,00,000 | 8,00,000 () Surplus 1 4,80,000 | 6,22,000 2. Non-Current Liabilities : p (a) Long term Borrowings (Debentures) 5 4,00,000 2,80,000 3. Current Liabilities :B.Com. Scroller - SEM-VI : (a) Trade Payables (Sundry Creditors) . 240,000; (b) Other Current Liabilities (Unpaid dividend) (c) Short-term Provisions (Provision for income tax) Total 12.00.0009 | 322% Ml. ASSETS: 24045 1. Non-current Assets: | (a) Property, Plant and Equipment ) Other Current Liabilities(Liability for Expenses) 30,000 36.0 (c) Short-term Provisions(Provision for taxation) —ao.0u0 | _stu Total 662,000 | $07.00 ILASSETS: 1. Non-current Assets : {a) Property, Plant and Equipment (i) Tangible Assets 7 2,80,000 3.7000 (i) Intangible Assets (Goodwill oo.000 | sit’ (b) Non-current Investment (Investment) 20,000 | wv (2 Current Assets : {a} Inventories (Stock) 77,000 Lona (b) Trade Receivables 5 1,60,000 | 2m" {c) Cash and Cash Equivalents 6 25.000 | _13) u 6.62.00 | sul Notes to Accounts : Particulars 2000) z 1. Share Capital : a () Subscribed and fully patd up : \- (a) Equity Capital 3,00,000 aoe (b) 8% Redeemable Preference Shares soo | 1%) asoow | ‘2 Surplus: (a) Capital Reserve : * (b) General Reserve 40,000 a§ Financial Reporting and Financial Statement Analysis (Hons.) (c)_ Balance in Statement of Profit & Loss 57,000 rn 97,000 | 1.58.01 3. Trade Payables : (a) Sundry Creditors 25,000 47,000 _20,000 | _16,000 (b) ils Payable 45,000 | 63,000 4, Property, Plant and Equipment - Tangible Assets : (a) Landand Building 2,00,000 (b) Plant —80,000 1,70,000 -2,00,000 2,80.000 3,70,000 5, Trade Receivables : 1,40,000 1,70,000 (a) Debtors (b) Bills Receivable 20,000 —30.000 1,60,000 | —_2,00,000 6 Cash and Cash Equivalents : (Cash in hand 15,000 10,000 Cash at Bank 10.000 | 8,000 25,000 | __ 18,000 ‘Additional Information : (a) A piece of land has been sold out in 2021 and the profit on sale has been credited to Capital Reserve Account. (b) A machine has been sold for € 10,000. The written down value of the machinery was 712,000. Depreciation of 10,000 is charged on Plant Account in 2021: (c) An interim dividend of € 20,000 has been paid in 2021. (@) Proposed Dividend for the year 2020 amounting to € 42,000 was paid in 2021. Proposed Dividend for the year 2021 € 50,000. (1997) IAns. Increase in working Capital ¢ 41,000; Total of Fund Flow Statement ¢ 3,45,000; Fund from Trading Operations € 1,85,000; Net profit € 1,78,000.] ‘Hints, (i) It is assumed that provision for taxation is made every year for the exact amount of Taxation liability. So income tax paid during the year 2021 is ¥ 40,000 (which is provided in the last year ). {i) It is assumed that no depreciation is charged on Land & Building, It ig also assumed that the portion of goodwill and preliminary expense are written off to Statement of Profit & loss.) ion of preference shares at a premium, sale of plant at a loss etc. are there 21. From the following Balance Sheet of PM Ltd. make out— (0 AStatement of Changes in Working Capital and (ii) Fund Flow Statement for the year 2021. (@ in lakhs) Particulars Note No. | 31.12.20] 31.12.21 x zg | EQUITY AND LIABILITIES : | = 1. Shareholders’ Funds : (a) Share Capital 1 15.00 15.00 (b) Surplus 2 13.00 15.00 2 Current Liabilities : 10.00 6.00 ir Jott 28:00 36-00 1. Non-current Assets : (a) Property, Plant and Equipment- 15-00 18:00 Tangible Assets (Plant at W.D.V)[Ans. Decrease in Working Capital % 1,00,000; Fund from trading operation ¥ 5,46,25; Total of Fund Statement @ 17,26,250.) ae Sale of machine and investment, redemption of debentures etc. are there | 22. The summarised Balance Sheets of X Ltd. as on 31st March, 2021 and on 31st March, 2022 are as follows : Particulars Note No. [March 31,2021] March,2022 | z t T_ EQUITY AND LIABILITIES: 1 1. Shareholders’ Funds (a) Share Capital 6,00,000/ 7,000 (b) Surplus 1 480,000, 622.000 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| 2.60.00 (b) Other Current Liabilities (Unclaimed Dividend) - 8.000 (c) Short-term Provisions (Provision for taxation) } _2.80,000} __1.70,000 Total 19,00.000| —_20,40,000 ASSETS: 1.Non-Current Assets : (a) Property, Plant and Equipment 2 11,40,000, —12,20,000 Tangible Assets. |be Fi : er Cr & (b) Nor-current investment (Trade h ee L Total 19,00,000| _20,40,000 aes to Accounts : : —porioaare 31.03.2021} 31.03.2022 z z 7. Surplus : (a) Capital Reserve = 20,000 (b) General Reserve 340,000} 4,00,000 (c) Balance in Statement of Profit & Loss 140,000] — _2.02.000 480,000 6,22,000 2 Short-term Provisions : {a) Provision for Income Tax 1,80,000 1,70,000 (b) Proposed Dividend 60,000} __72,000 2.40,000| 2,42,000 3. Property, Plant and Equipment 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 During the year ended 31st March, 2022 the Company :- {i) Sold one machine for % 50,000; The cost of the ma was % 1,28,000 and the depreciation provided for it was % 70,000 {ii) Redeemed 30% of debenture @ % 103. (ii) Sold some trade investments at a profit which was credited to Capital Reserve. (iv) Paid Income Tax % 1,65,000. (v) Proposed Dividend for the year 2020-21 amounting to ® 60,000 was paid in 2021-22 out of which unclaimed dividend of € 8,000 left unpaid 31.03.2021. Proposed Dividend for the year 2021-22 772,000. Prepare the Fund Statement for the year ended 31st March 2022. [2000) ‘has. Increase in WIC € 80,000; Fund from operation #6,38,600; Purchase of F. Assets #4,28,000; Total of FFS *8,48,600,] nts, Purchase of fixed Asset = 19,00,000 + 1,28,000 - 16,00,000 = 4,28,000.] 2, The Balance Sheets of Symphony Ltd, as on 30th June, 2020 and 30th June, 2021 are given below: Pe NoteNo. | 30.06.20 30.06.21 z z EQUITY AND LIABILITIES: shareholders’ Funds : (a) Share Capital : ean Loe 2 3,30,000 | 5,05,000 2Non-Current-Liabilities acl?) Lengeterm Borrowings(8% Debentures) 3,00,000 | _2,00,000 ' Curent Liabilities : (2) Trade Payables{ Creditor for goods] poanle ect ©) Ot Cae bie etre spe room| 700 CH i ision a ‘ (6) Shorter provision iow 14.70.000 | 17.32,000 {ssets: Non : () Proper, Pant and Eapment Tangbl Ass : Tango! 300% (b) Non-current Investment (Investment at cost) 180,000 1 1,80,000|B.Com. Scroller - SEM-VI (c) Other Non-curent Assets (Misc. Exp) 2. Current Assets : {a) Inventories (Stock} (b) Trade Receivables (c) Cash and Cash Equivalents {6} Other Curent Assets Total Notes to Accounts : Particulars ‘Share Capital £ () Subscribed and fully paid up : Equity Share Capital Pref. Share Capital (Redeemable) 2 Surplus: (a) General Reserve (b) Profiton sale of Investment (c} Balance in Statement of Profit & Loss 3. Property, Plant and Equipment - Tangible Assets: Fixed Assets Less. Depreciation 4. Trade Receivables : Debtors Bill Receivable 5. Other Current Assets : (a) Prepaid Expenses 2.000 so (b) Misce. Expenses " a Other Information : Duri 7 (a) Dato ayy 2021 fixed assets (present book Value & 10,000, depreciation written off & 30,000) "® (0) The dividend proposed in last year was paid in 2020-2021 (6) During 2020-2021investments costing € 80; purchased. redeemed at 10% premium, nS MEM By tung new equity shares and eben (e) Taxation lability for 2020-2021 was sted at ® 56,000, (f) Proposed Dividend for the year 2019-20 amounting to & 3 , ion ® interim dividend. Proposed Dividend for the year DOGG. oe gn Paid im 2020-21 in aad pa ear 2020-21 35, On the basis of the above information Prepare a Fund Flow Statement Lid, for year ended 30 June, 2021 "ment of Symphony i200! i . (a) Increasing W.C # 26,000; (b) Fund from operation # 344,500; ( 24, From the following information prepared : \ Ai) A statement of changes in working capital and () Total 5,92,500)> OE SOO 4 " Financt } ‘nancial Reporting and Financial Statement Analysis (Hons.) Cc —_— Lr eentneenatnenerenenmemmrenemnsnems (i) Fund Flow Statement ae le T 2 Particulars Note No. | 31.03.2021 | 31.03.2022 a a z zg 1 EQUITY AND LIABILITIES : ~ - 1, Shareholders’ Funds : a Share Capital 10,00,000 | 11,00,000 2.Non-current Liabilities : Hy 280.000 | 3.70000 (a) Long-term Borrowings (Debentures) 5,00,000 3,00,000 3. Current Liabilities : (a) Trade Payables 2 70,000 70,000 (b} Short - term provisions {Provision for Income Tax) 40,000 | _1.10,000 I. ASSETS: 1,Non-current Assets : {a) Property, Plant and Equipment : (i) Tangible Assets 3 10,20,000 14,60,000 (ii) Intangible Assets (Goodwill) 50, 000 40, 000 2. Current Assets : (a) Inventories (Stock) 2,50,000 2,10,000 (b) Trade Receivables (Debtors) 4 2,70,000 | 2,16,000 (c). Cash and Cash Equivalents(Cash) —3.00.000 | __24,000 Total 18,90,000 | 19.50.00 Notes to Accounts : Particulars 31.03.21 | 31.03.22 , z z 1.Surplus (2) General Reserve 2.00.00 2,00,000 (0) Balance in Statement of Profit & Loss —80,000 | _1,70,000 2,80,000 | 3,70.000 2. Trade Payables : | (a) Creditors 50,000 | 40,000 (b) Bills Payable 20,000 | __ 30,000 -70.000 | _ 70.000 3. Property, Plant and Equipment- Tangible Assets : (2) Land 420,000 | 660,000 (b) Machinery —6.00.000 | __8,00,000 10.20.000 | 14,60.000 4. Trade Receivables : on Debtors ,00,000 2,40,000 Less : Provision for Bad debs, —30.000 | ___24,000 = 2 2,70,000 | _2.16,000 Additional Information : (a) During the year, a part of machine costing € 7,500 accumulated depreciation thereon being & 2,500 was sold for % 3,000. () Income Tax of 2020 - 21 paid during 2021-22 was ¥ 40,000 (c) Depreciation on machinery provided for 2021-22 was ® 50,000. (2013)B.Com. Scroller - SEM-VI —S é Decrease in working capital ¢ 3,70,000; Total of Fund Flow Statement # 7,35,000; Fund from me €2,62,000.] rt, ve a Fund Flow Statement of TCS Lid, during the year 2021-2022 from the following Balance Sheets of TCS Ltd. as at 31.03.21 and 31.03.22 ‘Additional information available during the year 2021-2022 ; % 28,000 and accumulated depreciation on fixed Assets amounted to ® 1,30,000 aul ¢ tes, D00 as on 31.03.21 and 31.03.22 respectively. and & 1,65 mh dh Note No. |. EQUITY AND LIABILITIE 1 1. Shareholders’ Funds ES (a) Share Capital 1 (b) Sumphus a % 2-Nome - Current Libiltes: @ i a) Long-term Borrowings (9 | 3. Current Liabilities: ee Debentes) m ™ (a) Trade Payables (b) Short-term Provisions 9 (c) Other Current Liabilities (Unclaimed Dividend) i Total ~ TL ASSETS: oo] 1.Non-current Assets : {2) Property, Plant and Equipment (b) Long-term Loans & Advances 475 50 | (c) Other Non-current Assets oy a} (Misce. Expenditures) 6 a 2. Current Assets : (a) Inventories (b) Trade Receivables (Sundry Debtors) et & (c) Cash and Cash Equivalents (Cash and Bank) a a (d) Short-term Loans & Advances 5 ° Total = ed Notes to Accounts : # (in "000) 2021 2022 1. Share Capital : : : (a) Subscribed and fully paid up : (i) Eq. Share Capital of & 10 each 70 (ii) 8% Preference Share Capital to a 2. Surplus : na (a) Securities Premium 15 w (b) General Reserve 90 n (c) Balance in Statement of Profit & Loss 55 6 (d) Capital Redemption Reserve i a ae a ee i (a) An obsolete machine W.D.V. € 20,000 having 75% accumulated depreciation was disposed of | |> 5 Financial Reporting and Financial Statement Analysis (Hons.) 2 (b) Estimated tax liabilities provided for the year ¥ 26,000 in k of & 54,000 . . (o| Opening stock of € 54,000 which was previous ae cost for preparing income statement. sR IGT T IR hulle (4) Equity Shares and Debentures wey redeem Preference Shares at 10% re issued at 10% premium and 5% discount respectively to fe Premium at the end of the year. {e) Proposed Dividend for the year 2021 amounting to 7 25,000 was paid in 2022 out of which £3,000 left unclaimed on 31.12.2021. Proposed Dividend for the year 2022 8 27,000. (ans: Total of Fund Flow Statement % 2,81,000; Increase in working Capital %30,000 and Fund from operation 158,000] {2012} gale of machinery, issue of debentures, issue of bonus shares, interim dividend etc. are there ‘21. Following are the summarised Balance Sheets of Sonar Bangla Ltd. as on 31.3.2021 and 31.3.2022 7 Particulars NoteNo] 31.3.2021] 31.3.2022 z z “| EQUITY AND LIABILITIES : 1, Shareholders’ Funds : (2) Share Capital (Equity shares of ® 10 each) 4,00,000} —_6,00,000 (b) Surplus 1 3,80,000 3,38,000 2. Non-Current Liabilities ; (a) Long-term Borrowings 2 2,10,000 2,80,000 3. Current Liabilities : (a) Trade Payables 3 83,000 98,000 (b) Short-term Provisions (Provision for Taxation) — 60,000} __55,000 Total 11.33,000 | 13.71.00 IL ASSETS : 1. Non-current Assets : - (a) Property, Plant and Equipment - Tangible Assets 4 8,50,000 10,30,000 (b) Non-current Investments (Investments) 40,000 50,000 (c) Other Non-current Assets 8,000 12,000 (Discount on Debentures) 2. Non-current Assets = (2) Inventories (stock) 120,000 | 1,40,000 (b) Trade Receivables (Sundry Debtors) 80,000 | 95,000 (c) Cash and Cash Equivalents(Cash at Bank) —35,000| ___44.000 a 11,33,000 | 13.71.00 Notes to Accounts : 313.21] 313.22 =) : * Serpe: 50,000 (a) Securit i 7 : 60,000 ona 1,80,000/ _1,20,000 (©) Balance in Statement of Profit & Loss 1.50.00 | _1,58,000 a 3.80.00 | _3.38,000 . Long - term Borrowings : (88 ebernaee 10,000} 1.50,000 (b) Bank Loan —1.10.000 | _1,30,000 2.10,000 | _2.80,000 ~~3. Trade Payables : (a) Sundky Creditors (b)_ Bills Payable —13.000 be (b) wal ie se 4, Property Plant and Equipment- Tangible Assets : ty) (a) Land & Building 400.000 | S044 (b) Plant & Machinery, —4.50,000 8.50.000 Additional information: (i) Depreciation on Land & Building for the year 2021-2022 was ® 20,000. (ii) Accumulated depreciation on Plant & Machinery on 31.3.21 was ® 1,50,000 and on 313 was & 1,70,000. Machinery Costing % 50,000 (written down value & 10,000) was sold for & 12,000. (iv) 6% Debentures were issued at 10% discount. (¥) Bonus shares were issued at the rate of one share for every four shares held on 31.3.21 oug General Reserve, (\i) Interim dividend paid during the year % 20,000. (vil) Proposed Dividend for the year 2020-21 amounting to € 40,000 was paid in 2021-22. Propose Dividend for the year 2021-22 % 50,000. You are required to prepare: A statement showing the changes in Working Capital and A fund flow statement fort the year ended 31.3.2022 (2004) [Ans. Increase in Working Capital ¢ 29,000; Total of Fund Flow Statement % 4,29,000; Net Operating Pit 724,000.) | (Hints. (i) Plant & Machinery Purchased = Cl. Balance + Disposal - Op. Balance = (5,30,000 + 1,70,000) = % 50,000 - % (4,50,000 + 150,000) = % 1,50,000, (ii) Bonus Share issued % x % 4,00,000 = % 1,00,000. Equity share issued for cash = % [6,00,000- 4,00,000 — 1,00,000 (Bonus)] = % 1,00,000. ii) Discount on Debenture urrtten off to Statement of Profit & Loss = % (8,000 + 5,000 — 12,000) = ¢ 1,00) (Con Fre Balance Sheets of Boom Ltd. as on 31st March, 2021 and 2022 are given below: 31.03.2021 | 31.03. = z L_ EQUITY AND LIABILITIES : 1. Shareholders’ Funds : (a) Share Capital 4,00,000 5,00,000 (b) Surplus (i) Capital Reserve : ana (ii) General Reserve 1,80,000 | 2,100 (iii) Statement of Profit & Loss 110.000 | 1a (iv) Preliminary Expenses (30,000) (20.0001 2. Non-Current Liabilities : (a) Long-term Borrowing’: : ent Lab 300,000 | 2000" 3, Current Liabilities : (a) Trade Payables (Creditors) (b) Short-term Provisions : 1.30900 | 1200 (i) Provision for Income Tax | a oot se Total | qizo.000 | 12.300" Senescence 13217 os© Financial Reporting and Financial Sta a ae itement Analysis (Hons.) ce ETS: 1 SETS, cent Assets: 1. I) Property, Plant and Equipment at Cost 10,00,000 | 10,00,000 ("Less : Depreciation (2,60,000) | _*(3,10,000) (b) Investments 1,10,000 ‘90,000 Current Assets : » Cirent Asses (al) —3.20,000 | __4,50,000 tal | 11.70,000 | _12,30,000 paring the year ended 31st March, 2022, the company : {a} Sold one machine for % 40,000, the cost of which was 80,000 and the depreciation provided on it was € 30,000. {t) Provide ® 1,00,000 as depreciation. {cj Redeem the debentures at 105, {@) Sold some investments at a profit which was credited to Capital Reserve. (e] Decided to write-off the fixed assets (fully depreciated) costing Z 20,000. {| Decided to value opening stock at cost which was valued previously at cost less 10%. The opening stock according to books was % 63,000. The closing stock was correctly valued at cost. (| Proposed Dividend for the year 2020-21 amounting to % 40,000 was paid in 2021-22, Proposed Dividend for the year 2021-22 % 50,000. Prepare statement of sources and application of funds for the year ended 31.03.2022 showing changes inworking Capital. [2015] esl of Fund Flow statement ® 4,58,000. Increase in working Capital ? 1,33,000 ; find rom operation € 2,78,000; Purchase ‘of Fixed Assets’ 1,00,000, Sale of Investment 40,000. ‘de of Investment and Fixed Assets at a profit and Provision for taxation is wen. Fund Flow statement has to be prepared . & The summarised Balance Sheet of XYZ Ltd. as on 31.3.21 and 3 3.22 are as follows : Particulars NoteNo.| 31.3.2021 | 31.3.2022 Le z z EQUITY AND LIABILITIES : | Shareholders’ Funds : l2} Share Capital 450,000 | 450,000 1) Supls 1 356,000 | 3.78,000 *Non-current Liabilities : sci2ttm Borrowings: (Mortgage Loan) 1,68,000 | 2,70,000 Cirent Liabilities : (pede Payables (Sundry Creditors) 75,000 | 1,34,000 nae -term Provision vision for Taxation . Joann | pie Lg, Totad ‘) 10.49,000 | 12.42.00 Non. g “ctirent Assets : (a) : y nome, Plant and Equipment : Tangible Assets. oon 3,20,000 RCunent ent Investment (Investment) ’ 60,000 ta : (y ‘eivables (Sundry Debtors) 49 a ~—tatand Cash Equivalents (Bork) = 122.000 Tota 10.49.000 | 12.42,000 ~~ eeEh B.Com. Scroller - SEM-VI id of 2020 and 202), (ss. he following are the condensed Balance Sheet of B Ltd. at the en 2.Property, Plant and Equipment - Tangible Assets : {a)Land & Building (b)Plant & Machinery Less : Provision for Depreciation 3.Trade Receivables : (a)Debtors Less : Provision for Bad Debts (b)Bills Receivables Particulars Note No. 2020 | z ey 1 EQUITY AND LIABILITIES : a 1. Shareholders’ Funds : (a) Share Capital (Equity Share Capital) 250,000 38099 (b) Surplus 1 1,72,500 Lansy, 2. Non-Current Liabilities : {a)_ Long-term Borrowings ( 6% Debentures) 50,000 | tagy 3. Current Liabilities : (a) ‘Trade Payables (Sundry Creditors) 79,000 Sim (b) Other Current Liabilities (Outstanding Expenses) 7,000 5a (c)_ Short-term Provisions (Provision for Income Tax) —#0.000 25.05) Total : 5.88500 | 67359 Tl ASSETS: 1. Non-Current Assets : (a) Property, Plant and Equipment — Tangible Assets 2 285,000 | 3850 (b) Other Non-Current Assets (Debenture issue expenses) 3,000 3.00) 2. Current Assets : (a) Inventories (stock) 1,90,000 193,000 (b) Trade Receivables 3 73,000 87,00 (c) Cash and Cash Equivalents [ Cash in hand and at Bank) 30,500, 5500 {d) Other Current Assets (Debenture issue expenses) 1000 | __- Total 588,500 | 6.73500 Notes to Accounts : Particulars 2020 7 L-Surplus : 1,75,500 | 180500 Less : Reliminary Expenses 3,000 | _— 1,72,500 | 180.50 1,25,000 125000 2,40,000 | 36000 INB. Figures in the parenthesis represent loss,] ‘Additional Information: (a) Horne Tax paid in 2021 was ® 35,000 (b) An old machine was sold for % 44,000, the cost and Written down value of which were © 60.000 and ¥ 40,000 respectively. (c) Bonus shares at 2 for every 5 equity shares were issued out of accumulated Reserves & Supls we. aFinancial Reporting and Financial Statement Analysis (Hons.) ii i to that sed dividend for 2020 amounting to 2 30,000 were paid in 2021 and in addition Prometim Dividend for & 25,000 was paid in the same year. proposed Dividend for the year 2021 ® 52.500. i for the Fund Flow Statement and Statement of changes in working capital of the anaes ; te ing 31.12.2021. 2008 i bea oa ra Flow Statement ¥ 3,00,000; Decrease in Working Capital # 20,000; Purchase of 2 Tee Fund from operation € 2,36,000 | & ) ‘e sMpliowing are the condensed Balance Sheet of B Ltd, at the end of 2020 and 2021: = pro ~ | Note No. 2020 a : pauls z —— ay AND ILITIES : UITY AND LIABII ee pareholders' Funds 250,000 | 3,50,000 |}, Share Capital (Equity Share Capital) 175500 1,80,500 Oana Liab Non-Current Liabilities : 50,000 20,000 Cr, 0,000 | 1,00,000 {b)_ Long-term Provisions (Provision for Depreciation) y 3. Current Liabilities : 79,000 83,000 (a) Trade Payables (Sundry Creditors) 7,000 15,000 (>) Other Current Liabilities (Outstanding Expenses) 1 _43.000 | __43,000 [c)_ Short-term Provisions 684.500 | 7.91500 Total IL ASSETS : 1.Non-Current Assets : / 2 3,65,000 | 4,85,000 (a) Property, lant and Equipment-Tangible Assets ‘S000 3,000 (>) Other Non-Current Assets (Debenture issue expenses) 2 Curent Assets : 1,90,000 | 1,93,000 (a) Inventories 3 86,000 | 1,05,000 (b) Trade Receivables 30,500 5,500 (c)_ Cash and Cash Equivalents 4 10,000 —— (a) Other Current Assets, 6,84.500 | __7.91,500 —___ Total ~ Nae : “Sto Accounts : 2020 2021 Particulars z z * Short-term Provisions : 30,000 25,000 &) Provision. for Income Tax 13,000 —18.000 "| Provision for Bad Debt 43.000 43,000 2 : Petty, Plant and Equipment-Tangible Assets : 1,25,000 1,25,000 fh, Land and Building -2.40,000 | _3,60,000 ” Plant and Machinery 3.65,000 | 4.85000 La 7 Sc heceivables 50,000 | 90,000 1h, Debtors 26,000 10 tb —15.000 ) BilsReceivables 86.000 | 1.05.000 | se— ES 68 B.Com. Scroller - SEM-VI 4, Other Current Assets : (a) Debenture issue expenses Q | 7,000 liminary Expen: : (b)_ Preliminary Expenses | ee | = ot — Additional information (i) Income tax paid in 2021 was % 35,000, (i) An old machine was sold for % 44,000, the cost and written down value of which Were % 60 oq and % 40,000 respectively, (iil) Bonus shares at t 2 for every 5 equity shares were issued out of accumulated Reserve & Sy (iv) Proposed dividend for 2020 amor an interim dividend for % 25, SB eatingrion 2044 ota hac’ The only item in luipment Account sold during the year Was a specialised machine that originally cost 7 15,000. The accumulated depreciation on this machine at the time of sale Was 78,000. The machine was sold for %6,000 and fell Payment was recoi ived in cash Comparative Balance ee ee Sheets, Particulars LEQUITY AND LIABILITIES; 1. Shareholders’ Funds ; (2) Share Capital (0) Surplus (Retained earings) 2. Non-Current Liabilities : (2) Long-term Borrowings (Debentures) 220,000 | | 3. Current Liabilities : (a) Trade Payables 86, (b) Other Current Liabilities (Social Security Taxes Accrued) ‘000 | 2,11,000 ‘ 1,02,000 3,000 5,000 (6) Short-term provisions (Estimated Income Tax Liability) _ | _ massers; | 826.000 350.000 : 1. Non-Current Assets ; (a) Property, Plant and Equipment ; 3.75,000 | (i) Tangible Assets a (ii) Intangible Assets (Patents) | Soo | en . Current Assets; * ai Inventories a | “200 enon (b) Trade Receivable ( Accounts Receivable} son | 7000 (c) Cash and Cash Equivalents (cash) i | (d) Other Current Assets(Prepaid Expenses) | Total@ B.Com. Scroller - SEM-VI 2 (b) Trade Payables {b) Short-term provisions (Provision for Taxation) Total i, ASSETS: 1. Non-Current Assets : (a) Property, Plant and Equipment- (i) Tangible Assets (i) Intangible Assets(Goodwill) 2. Current Assets : (a) Inventories (Stock) (b) Trade Receivables (Tiade Debtors) (c) Cash and Cash Equivalents(Cash and Bank) (4) Other Current Assets (Pre-payments) Total Notes to Accounts : - Particulars 1. Surplus: (a) Reserves (b) Balance in Statement of Profit & Loss 2. Trade Payables : la) Creditors 39,000| ae (b) Bills Payable 33. 790| 11.000 72.790) 52.660 ‘3. Property, Plant and Equipment - Tangible Assets : | fel aeoee) 1,48,500/ 14425) (>) Machinery Liven Ha 261.450, 2,70.450 During the year ended December 31, 2020, a dividend of & 26,000 was Paid and the assets of another company were purchased for € 50,000 payable in fly paid up shares’ Got nace red were: Stock ® 21,640, Machinery ® 18,360 and Goodwill & 10,000 Jn addition, plant at a cost of ® 5,650 was purchased during the year, The following depreciation was writen off during the year. On propery, 84,250 and on machinery, ® 10,760 hese during the year amounting to € 28,770 was paid. Net profit for he yar bere toy wan oe a Prepare a Statement of Sources and Uses of Funds (Ans. Increase in working: Capital % 52,530; Fund from operation ¥ 91,310; Total of Fund Flow Statement 71,41,310.) (49. ) Following are the Balance Sheets of popular Ltd. as on 31, ee Particulars Ty Note Ne. EQUITY AND LIABILITIES : 1 _ 1. Shareholders’ Funds : (a) Share Capital 200000 2. Non-Current Liabilities : (a) Long-term Borrowings (Bank Loan) 3. Current Liabilities : | | ea (b). Surplus i | 90.000 |Financial Reporting and Financial Statement Analysis (Hons.) (9 (|) Trade Payables (Sundry Creditors) 35.200 tel oho i 150000 | 1,35. {p)_ Short-term Provisions (Provision for Taxation) "30,000 | 35,000 bes 5,30,500 | 5.10,800 ASSETS: at Assets : 1 ‘Current Assets : 1 Non ropery, Plant and Equipment — ee 5 3,59,000 {iy Intangible Assets (Good) 2 350000 9.000 2. Current Assets : {a}, Inventories (Stock) aan 74,000 {b) Trade Receivables (Sundry Debtors) 20.000 74000 {c)_ Cash and Cash Equivalents : 5,30,500 2021 (2022 _ : a “1 Surplus : fa) Gener 50,000 60,000 {t) Balance in Statement of Profit and Loss 30500 30.600 1 Property, Plant and Equipment-Tangible Assets : (a) Land and Building 200,000 | 1,90,000 (b), Machinery 150,000 | 1.69.00 4. Cashand Cash Equivalents : (a) Cash 500 600 (b) Bank —500 | —_—_8.600 ‘Mdtional Information : During the year ended 31.03.22 : (2) Dividend of % 23,000 was paid [b} Assets of another company were purchased for a consideration of © 50,000 payable in shares. The following assets were purchased for : Stock * 20,000; Machinery % 25,000 and Goodwill € 5,000 (0) Machinery was further purchased for % 8,000. (4) Depreciation written off on Machinery ® 12,000 le) Income Tax provided during the year € 33,000. tH Loss on sale of Machine of ® 200 was written off to general reserve. You are required to prepare : ') Statement of charges in Working Capital. \i) Statement of Fund Flow. (2014) lis: Decrease in working capital 38,900; Total of Fund Flow Statement #1,29,000; Sale proceed of “shine £1,800; Payment of tax 28,000; Fund from operation %8,300] agile: There is a misprint in the questions paper regarding the figure of value of goodwill in the year This should be taken as nil for the purpose of solving of this problem) 3 of land and plant, dividend from pre-acquisition profit, writing of intangible “ets etc. are there From the following balance sheets and information of Everest Ltd. for 2020 and 2021, draw out a ‘nds flow statement and statement of changes in working capital for 2021 ;