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BRILLIANT’S Fund Flow Statement 83

Current Liabilities 80,000 1,60,000 – 80,000
80,000 1,60,000 1,35,000 80,000
(–) 80,000
Increase in Working Capital 55,000

Funds From Operations
Particulars Amount
(`)
Reserves and Surplus as per current year Balance Sheet 2,70,000
Less: Reserves and Surplus as per last year Balance Sheet 1,90,000
Profit during the year 80,000
Add: Non- Cash Item and Appropriation
Dividend to Equity Shareholders 45,000
Preference Share Redemption Premium 15,000
Discount on Debentures Written off 5,000
Depreciation on Machinery 60,000 1,25,000
Add: Non-Operating Losses
Loss on Sale of Fixed Assets 37,500
Funds from Operations 2,42,500

Funds Flow Statement

Sources of Funds Amount Application of Funds Amount
(`) (`)
Funds from Operations 2,42,500 Increase in Working Capital 55,000
Share Capital Issue 50,000 Dividend 45,000
Debenture Issue 1,80,000 Redemption of Preference Shares 1,00,000
Sale of Machinery 2,500 Premium on Redemption 15,000
Investment Purchased 50,000

Purchase of Fixed Assets 2,10,000
4,75,000 4,75,000

Working Notes:
Dr. Fixed Assets A/c Cr.

Particulars Amount Particulars Amount
(`) (`)
To Balance b/d 5,10,000 By Bank A/c 2,500
To Bank (Purchased) 2,10,000 By P&L A/c 37,500