Page 230 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Unit 12: Fund Flow Analysis

(e) Equipment with a cost of ` 298800 was purchased for cash .Equipment with a cost of Notes
` 73800 (book value ` 64800) was sold for ` 61200.
(f) Debenture for ` 18000 were redeemed for cash and for ` 54000 were redeemed by
converting into equity shares at par value.

(g) Equity shares of ` 162000 were issued for cash at par.
(h) Income tax paid during the year amounted to ` 117000.

Prepare the fund flow statement with both the methods.

10. “Fund flow statements can be used to identify a variety of problems in the way a company
operates.” Illustrate the statement by the help of suitable examples.

Answers: Self Assessment

1. cash 2. working capital change
3. False 4. True
5. False 6. False

7. (c) 8. (a)
9. (a) 10. (a)
11. (b) 12. (a)
13. (a) 14. (d)
15. (d) 16. (a)

12.8 Further Readings

Books B.M. Lall Nigam and I.C. Jain, Cost Accounting, Prentice-Hall of India (P) Ltd.
Hilton, Maher and Selto, Cost Management, 2nd Edition, Tata McGraw-Hill
Publishing Company Ltd.
M.N. Arora, Cost and Management Accounting, 8th Edition, Vikas Publishing House
(P) Ltd.
M.P. Pandikumar, Management Accounting, Excel Books.

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