Page 78 - Corporate Finance PDF Final new link

78 Corporate Finance BRILLIANT’S

Sundry Debtors 75,000 85,000 10,000 -
Inventories 1,30,000 1,05,000 - 25,000
2,20,000 2,16,000
Current Liabilities:
Sundry Creditors 1,30,000 1,50,000 - 20.000
1,30,000 1,50,000
Working Capital 90,000 66,000
Net decrease in working capital - 24,000 24,000 -
90,000 90,000 45,000 45,000

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

Issue of Share Capital 40,000 Redemption of Debenture 50,000
Securities Premium 10,000 Purchase of Land & Buildings 45,000
Sale of Furniture NPP 2,000 Purchase of Plant and
Sale of Plant and Machinery 3,000 Machinery 50,000
Funds from Operations 92,000 Purchase of Furniture 6,000
Net decrease in working capital 24,000 Dividend paid for 20,000
1,71,000 1,71,000

Workings:
Dr. Provision for Depreciation Plant & Machinery A/c Cr.
Particulars Amount Particulars Amount
(`) (`)
To Plant & Machinery 13,000 By Balance b/d 1,40,000
(On sold machinery) By Adjusted P & L A/c (b/f)
To Balance c/d 1,50,000 (Depreciation provided 23,000
during the year)
1,63,000 1,63,000
Dr. Plant & Machinery A/c Cr.
To Balance b/d 2,90,000 By Cash (Sales) 3,000
To Cash (Purchase) 50,000 By Provision for Depreciation 13,000
(Balancing figure) on Plant and Machinery
By Adjusted P & L A/c 4,000
(Loss on Sale)
By Balance c/d 3,20,000
3,40,000 3,40,000