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76 Corporate Finance BRILLIANT’S

Funds Flow Statement (for the year ended 31-12-2018)
Source of Funds Amount Application of Funds Amount
(`) (`)

Issue of Share 50,000 Purchase of Fixed Assets 35,000
Funds from operation 45,000 Increase in Working Capital 60,000
95,000 95,000

Working Note:
Dr. Fixed Assets A/c Cr.
Particulars (`) Particulars (`)

To Balance b/d 1,90,000 By Adjusted P & L A/c (Dep.) 15,000
To Cash (Purchase) 35,000 By Balance c/d 2,10,000
2,25,000 2,25,000

Adjusted Profit & Loss A/c
Dr. NPP Cr.
To Fixed Assets (Depreciation) 15,000 By Balance b/d 30,000
To Balance c/d 60,000 By Fund from operation 45,000
75,000 75,000
Dr. Share Capital A/c Cr.

To Balance c/d 4,00,000 By Balance b/d 3,00,000
By Cash 50,000
By Gen. Reserves (Bonus shares) 50,000
4,00,000 4,00,000
Illustration 2.1.2
The following are the summarised Balance Sheets of a company as on 31 December 2017
and 2018: / 31 {Xgå~a 2017 VWm 2018 H$mo EH$ H§$nZr H$s g§{jßV ~¡b|g erQ> {ZåZ{b{IV h¡…

Particulars ({ddaU) 31-12-2017 31-12-2018
(`) (`)
Liabilities / bm¶{~{bQ>rO:
Equity Share Capital / B{³dQ>r eo¶a H¡${nQ>b 2,00,000 2,40,000
8% Debentures / 8% {S>~|Mg© 50,000 -
Securities Premium / {g³¶mo[aQ>rO àr{‘¶‘ - 10.000
General Reserve / OZab [aOd© 30,000 50,000
Profit & Loss Account / àm°{’$Q> E§S> bm°g AH$mC§Q> 48,000 68,000
Sundry Creditors / g§S´>r H«o${S>Q>g© 1,30,000 1,50,000