Question

Following are the balance sheets of a limited company as on 31st December, 2016 and

2017.

Liabilities 2016

Rs.

2017

Rs.

Assets 2016

Rs.

2017

Rs.

Share Capital

P & L A/c

Creditors

Bills payable

Bank

Loan(Long

term)

Reserve

60,000

8600

22,000

8,000

22000

16,000

75,000

9000

18000

9000

……

19800

Furniture

Building

Stock

Debtors

Goodwill

Bank

Cash

36000

50950

25500

21500

2,500

……..



150

43,000

48000

20000

15000

1520

3100

180

1,36,600 1,30,800 1,36,600 1,30,800

Taking into account the following additional information, you are required to prepare

funds flow statement and statement of changes in working capital.

(a) Rs. 8,000 was paid as dividend during the year.

(b) Depreciation on Furniture was charged Rs. 4000 and on Building, it was Rs.3000.

(3​

Answer 1

(a) Rs. 8,000 was paid as dividend during theyear