Page 84 - Corporate Finance PDF Final new link

84 Corporate Finance BRILLIANT’S

By Depreciation 60,000
By Balance c/d 6,20,000
7,20,000 7,20,000
Illustration 2.1.5
The comparative Balance Sheets of Beta Trading Co. for the year 2017 and 2018 are given
below. Prepare the funds flow statement for the year 2018.
df© 2017 VWm 2018 Ho$ {bE ~rQ>m Q´>oqS>J H§$nZr H$s H$ånoao{Q>d ~¡b|g erQ> ZrMo Xr J¶r h¡& df© 2018 Ho$ {bE
’§$S²>g âbmo ñQ>oQ>‘|Q> V¡¶ma H$s{OE&
Balance Sheets of Beta Trading Co.
Amount Amount Amount Amount
(am{e) (am{e) (am{e) (am{e)

Liabilities (bm¶{~{bQ>rO) 2017 2018 Assets (AgoQ²>Q>) 2017 2018
(`) (`) (`) (`)
4,00,000 3,60,000 Fixed Assets
Share Capital NPP 5,20,000 4,80,000
(eo¶a H¡${nQ>b) ({’$³ñS> AgoQ²>g)
General Reserve 60,000 1,10,000 Less: Depreciation 1,40,000 1,08,000
(OZab [aOd©) (KQ>mB©¶o… S>o{à{gEeZ)
P & L A/c 33,450 20,450 3,80,000 3,72,000

(àm°{’$Q> E§S> bm°g AH$mC§Q>) Investment (BÝdoñQ>‘|Q>) 50,000 1,00,000
Sundry Creditors 1,95,350 1,33,650 Debtors (S>oãQ>g©) 1,67,800 1,18,300
(gÝS´>r H«o${S>Q>g©) Stock / (ñQ>m°H$) 90,500 55,600
Proposed Dividend 15,000 28,800 Bank Balance (~¢H$ eof) 47,500 49,800

(ànmoñS> {S>{dS>oÝS>) Preliminary Exp. – 7,200
Provision for Tax 32,000 50,000 ({à{b{‘Zar E³gn|gog)
(Q>¡³g Ho$ {bE àmo{dOZ)
7,35,800 7,02,900 7,35,800 7,02,900

Additional Information / A{V[a³V gyMZm:
(a) The net profit for the year (after providing depreciation of ` 40,000, writing off preliminary
exp. ` 7,200 and making provision for tax of ` 32,000) amounts to ` 38,000.
df© H$m Hw$b bm^ (< 40,000 S>o{à{gEeZ, < 7,200 amBqQ>J Am°’$ {à{b{‘Zar E³gn|g VWm < 32,000
Q>¡³g Ho$ àmdYmZ Ho$ níMmV²) < 38,000 am{e h¡&
(b) During the year old machinery (Accumulated dep. ` 8,000) costing ` 9,000 was sold for
` 3,000.