nahraf
Oct 31, 2009, 05:07 AM
The balance sheets of ABC Ltd. as on 31-3-2008 and 31-3-2007 are as given below:
ABC Ltd.
Balance Sheets
31-3-08 31-3-07
Sources of Funds
Share Capital 5,000 4,000
Reserves and Surplus
General Reserve 1,000 800
P&L A/c 400 200
Share Premium 1,000 -
Capital Reserve 1,000 500
3,400 1,500
Secured Loans 4,000 3,000
Unsecured Loans 3,000 1,000
Total 15,400 9,500
Applications of Funds
Fixed Assets –Gross Block 12,000 10,000
Less: Accumulated Depn. 3,000 2,000
Net Block 9,000 8,000
Capital Work-in-progress 3,000 -
Investments 2,000 5,00
Current Assets, Loans and Advances
A. Current Assets
Inventories – Raw materials 700 600
Work-in-progress 250 300
Finished goods 150 200
Sundry Debtors 1,200 1,300
Prepayments 200 150
Cash and Bank Balances 500 400
3,000 2,950
B. Loans and Advances
Advance tax 1,400 9,00
Loans to employees (long-term) 1,000 5,00
5,400 4,350
Less: Current Liabilities of Provisions
A Current Liabilities
Sundry Creditors 8,00 9,50
Outstanding Expenses 4,00 3,00
B. Provisions
Provisions for Retirement
Benefits of employees 3,50 3,00
Tax Provision 1,450 1,000
Proposed Dividend 1,000 8,00
4,000 3,350
Net Current Assets 1,400 1,000
Total 15,400 9,500
Additional Information:
1. Actual tax liability for 2006-07was Rs. 950 lacs;
2. A piece of machinery costing Rs. 500 lacs, accumulated depreciation Rs. 200 lacs was sold for Rs. 250 lacs. The loss was charged to profit and loss account;
3. A portion of secured loan as on 31-3-07 amounting to Rs. 400 lacs was converted into equity at a premium Rs. 200 lacs. There was also fresh issue of equity at 100% premium.
4. Out of secured loans as on 31-3-08 Rs 500 lacs were short-term loans.
5. Out of unsecured loans, short¬-term loans were to the extent of Rs. 400 lacs and Rs. 500 lacs respectively as on 31-3-07 and 31-3-08.
6. Out of investments Rs. 200 lacs were current investments as on 31-3-07 and Rs. 500 lacs were current investments as on 31-3-08.
7. There was a revaluation of fixed assets during 2007-08 and the revaluation profit Rs. 500 lacs was charged to capital reserve.
From the information given above, you are required to prepare:
a) Statement showing changes in working capital
b) Funds flow statement.
ABC Ltd.
Balance Sheets
31-3-08 31-3-07
Sources of Funds
Share Capital 5,000 4,000
Reserves and Surplus
General Reserve 1,000 800
P&L A/c 400 200
Share Premium 1,000 -
Capital Reserve 1,000 500
3,400 1,500
Secured Loans 4,000 3,000
Unsecured Loans 3,000 1,000
Total 15,400 9,500
Applications of Funds
Fixed Assets –Gross Block 12,000 10,000
Less: Accumulated Depn. 3,000 2,000
Net Block 9,000 8,000
Capital Work-in-progress 3,000 -
Investments 2,000 5,00
Current Assets, Loans and Advances
A. Current Assets
Inventories – Raw materials 700 600
Work-in-progress 250 300
Finished goods 150 200
Sundry Debtors 1,200 1,300
Prepayments 200 150
Cash and Bank Balances 500 400
3,000 2,950
B. Loans and Advances
Advance tax 1,400 9,00
Loans to employees (long-term) 1,000 5,00
5,400 4,350
Less: Current Liabilities of Provisions
A Current Liabilities
Sundry Creditors 8,00 9,50
Outstanding Expenses 4,00 3,00
B. Provisions
Provisions for Retirement
Benefits of employees 3,50 3,00
Tax Provision 1,450 1,000
Proposed Dividend 1,000 8,00
4,000 3,350
Net Current Assets 1,400 1,000
Total 15,400 9,500
Additional Information:
1. Actual tax liability for 2006-07was Rs. 950 lacs;
2. A piece of machinery costing Rs. 500 lacs, accumulated depreciation Rs. 200 lacs was sold for Rs. 250 lacs. The loss was charged to profit and loss account;
3. A portion of secured loan as on 31-3-07 amounting to Rs. 400 lacs was converted into equity at a premium Rs. 200 lacs. There was also fresh issue of equity at 100% premium.
4. Out of secured loans as on 31-3-08 Rs 500 lacs were short-term loans.
5. Out of unsecured loans, short¬-term loans were to the extent of Rs. 400 lacs and Rs. 500 lacs respectively as on 31-3-07 and 31-3-08.
6. Out of investments Rs. 200 lacs were current investments as on 31-3-07 and Rs. 500 lacs were current investments as on 31-3-08.
7. There was a revaluation of fixed assets during 2007-08 and the revaluation profit Rs. 500 lacs was charged to capital reserve.
From the information given above, you are required to prepare:
a) Statement showing changes in working capital
b) Funds flow statement.