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NPP

492 Corporate Finance BRILLIANT’S

Section-B
Q.12. From the figures given below, prepare a statement showing application and sources of
funds for the year 2018.

Amount Amount Amount Amount
Liabilities 2017 2018 Assets 2017 2018
(`) (`) (`) (`)
Equity Capital Fixed Assets (net) 5,10,000 6,20,000
Share Capital (Equity) 3,00,000 3,50,000 Investment 30,000 80,000
Share Capital Current Assets 2,40,000 3,75,000
8% pref. shares 2,00,000 1,00,000 Discount on deb. 10,000 5,000
Debentures 20,000 2,00,000
Reserves & Surplus 1,90,000 2,70,000
Current Liability 80,000 1,60,000
7,90,000 10,80,000 7,90,000 10,80,000

You are informed that during the year (i) A machine with a book value of ` 40,000 was sold at
` 2,500 (ii) Preference shares redemption was done at a premium of 15% on Dec., 2018
(iii) Dividend at 15% was paid on equity shares for year 2017 and (iv) Depreciation charged
during the year ` 60,000. [See Illustration 2.1.4]
Q.13. Jycee Motors Ltd. has offered you the following particulars for the preparation of Cash
flow Statement for the year 2017-18 as per AS-3 (indirect method.) `
Net Profit 25,00,000
Dividend (including dividend tax paid) 8,53,500
Provision for Income Tax 5,00,000
Income tax paid during the year 4,24,800
Loss on sale of Assets 4,000
Book value of the Assets sold 18,500
Depreciation charged 20,00,000
Amortization of capital grants 600
Profit on sale of investment 10,000
Carrying amount of investments sold 27,76,500
Interest income on investments 2,50,600
Interest expenses 10,00,000
Interest paid during the year 10,52,000
Increase in working capital excluding Cash & Bank Balances 56,07,500
Purchase of fixed assets 14,56,000
Investment in Joint Venture 3,85,000
Expenditure on construction work in progress 34,74,000
Proceeds from calls in arrear 200
Receipt of grant for capital projects 1,200
Long-term borrowings 25,98,000
Short-term borrowings 20,57,500