Page 162 - DMGT403_ACCOUNTING_FOR_MANAGERS

Unit 7: Fund Flow Statement

2. Balance Sheets of M/s Black and White as on 1-1-2009 and 31-12-2009 were as follows: Notes
Balance Sheet
Liabilities 1-1-2009 31-12-2009 Assets 1-1-2009 31-12-2009
( ) ( ) ( ) ( )
Creditors 40,000 44,000 Cash 10,000 7,000
Mrs.Whites’Loan 25,000 - Debtors 30,000 50,000
Loan from P.N.Bank 40,000 50,000 Stock 35,000 25,000
Captial 1,25,000 1,53,000 Machinery 80,000 55,000
Land 40,000 50,000
Building 35,000 60,000
2,30,000 2,47,000 2,30,000 2,47,000

Additional Information:
(a) During the year machine costing 10,000 (accumulated depreciation 3,000) was
sold for 5,000 .
(b) The provision for depreciation against machinery as on 1-1-2009 was 25,000 and on
31-12-2009 40,000.

(c) Net profit for the year 2009 amounted to 45,000.
You are required to prepare funds flow statement.
3. Discuss the various methods of determining the fund from/lost (in) operations.
4. Explain the process of preparing the statement of changes in working capital.
5. Draft the pro forma of the Fund Flow Statement.

6. From the following balance sheets of A Ltd. on 31st Dec. 2008 and 2009, you are required
to prepare Fund flow statement. The following are additional information has also been
given
(a) Depreciation charged on plant was 4,000 and on building 4,000
(b) Provision for taxation of 19,000 was made during the year 2009.
(c) Interim Dividend of 8,000 was paid during the year 2009.

Balance Sheet
Liabilities 2008 ( ) 2009 ( ) Assets 2008 ( ) 2009 ( )
Share capital 1,00,000 1,00,000 Good will 12,000 12,000
General Reserve 14,000 18,000 Building 40,000 36,000
Profit & Loss A/c 16,000 13,000 Plant 37,000 36,000
Sundry creditors 8,000 5,400 Investments 10,000 11,000
Bills payable 1,200 800 Stock 30,000 23,400
Provision for taxation 16,000 18,000 Bill receivable 2,000 3,200
Provision for doubtful 400 600 Debtors 18,000 19,000
debts
Cash 6,600 15,200
1,55,600 1,55,800 1,55,600 1,55,800

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