Page 163 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes 7. Prepare schedule of changes in Working Capital and Funds Flow Statement from the
following Balance Sheets as on December 31, 2008.
Liabilities 2008 2009 Assets 2008 2009
( ) ( ) ( ) ( )

Capital 10,000 10,000 Cash 5,600 5,400
Profit & Loss A/c 5,200 15,400 Debtors 3,400 6,600
Long-term Loan 6,000 8,000 Stock 5,400 9,200
Short-term Loan 2,400 2,400 Long-term Investments 7,000 12,000
Creditors 3,600 3,600 Plant 10,600 9,600
Outstanding Wages 1,400 800 Prepaid Insurance 400 800
Income Tax Provision 3,800 3,400
32,400 43,600 32,400 43,600
Plant was sold at its book value, i.e., 1,000/.

8. From the following Balance Sheets, prepare a Schedule of changes in Working Capital and
Funds Flow Statement:
Liabilities 31.12.07 31.12.08 Assets 31.12.07 31.12.08
( ) ( ) ( ) ( )
Capital 4,80,000 5,10,000 Cash at Bank 24,000 54,000
Profit & Loss a/c 8,50,000 10,50,000 Debtors 9,90,000 11,90,000
Creditors 54,000 30,000 Stock 54,000 42,000
Mortgage Loans 28,000 1,00,000 Land 2,00,000 2,00,000
Plant 1,44,000 2,04,000
14,12,000 16,90,000 14,12,000 16,90,00
9. The following is the abstract of balance sheet of Software securities Ltd. for the year 2005
and 2006

2005 2006 2005 2006
Liabilities ( ) ( ) Assets ( ) ( )
Provision for depreciation 108000 396000 Land 26000 81000
Retained earning 244800 370800 Building 60000 360000
9% Debenture 270000 198000 Accumulated depreciation
on building 19800 37800
Account payable 72000 41400 Equipment 122400 347400
Expense payable 0 18000 Accumulated depreciation
on Equipment 18000 50400
Stock in hand 10800 97200
Account receivable 36000 122400
Cash in hand 66600 97200
Preliminary expenses 10800 7200

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