1. I.H.M , Dehradun
ACCOUNTANCY
Notes by -:
G.K Sawhney
7895190950
TOPIC -FUND FLOW STATEMENT
Ques1) Following are the Balance sheet of Vikas ltd.
Liabilities 2006 2007 Asset 2006 2007
Equity sh. Capital 200000 250000 Cash 10000 20000
Security Premium 30000 40000 Bank 30000 10000
General reserve 10000 20000 Bill receivable 10000 -
Retain earning 40000 60000 Sundry debtor 60000 80000
Debenture 80000 60000 Stock in hand 60000 50000
Sundry creditor 60000 50000 Prepaid expense 10000 10000
Bills payable 10000 5000 Preliminary 20000 10000
expense
Proposed dividend 20000 15000 Land & building 130000 110000
Provision for tax 20000 30000 Plant & machinery 180000 300000
Accumulated 40000 60000
depreciation
510000 590000 510000 590000
Prepare-:
1) Schedule of Change in working capital
2) Fund Flow Statement
3) Cash Flow Statement
Ques 2) Following are the Balance sheet of Ankita ltd.
Liabilities 2009 2010 Assets 2009 2010
Equity sh. Capital 300000 320000 Cash in Hand 30000 40000
Pref. sh. Capital 100000 60000 Sundry Debtor 80000 90000
Retain earning 40000 200000 Stock in hand 50000 40000
Debenture 80000 100000 Preliminary 10000 5000
expense

2. Sundry creditor 40000 70000 Goodwill 15000 10000
Bills payable 10000 - Discount on share 5000 -
Provision for Tax 20000 25000 Land & Building 200000 220000
Proposed dividend 20000 15000 Plant & Machinery 240000 240000
Dep. Reserve A/c 20000 35000
630000 645000 630000 645000
Prepare-:
1)Schedule of Change in Working Capital
2) Fund Flow Statement
3)Cash Flow Statement
Ques3) Following are the Balance Sheet of Nikhil ltd. Prepare Cash Flow Statement.
Liabilities 2009 2010 Assets 2009 2010
Equity sh. Capital 300000 360000 Cash 8000 16000
Pref. sh. Capital 60000 40000 Bill receivable 10000 5000
Debenture 40000 30000 Debtors 60000 80000
Retain earning 20000 30000 Stock 50000 40000
Reserve fund 10000 15000 Prepaid expense 8000 -
Creditors 95000 80000 Preliminary exp. 12000 10000
Bills Payable 10000 30000 Goodwill 20000 10000
Provision for Tax 20000 10000 Land & Building 90000 80000
Proposed dividend 10000 5000 Plant &Machinery 307000 359000
565000 600000 565000 600000
Ques 4) Following are the balance sheet of Sahil ltd. Prepare cash flow statement.
Liabilities 2008 2009 Assets 2008 2009
Equity sh. Capital 280000 360000 Cash 40000 30000
Pref. sh. Capital 80000 40000 Bill receivable 10000 20000
Debenture 40000 90000 Debtor 90000 60000
Bank Loan 60000 50000 Stock in hand 110000 130000
Retain earning 40000 30000 Prepaid expense 20000 10000
Reserve Fund 10000 20000 Preliminary exp. 15000 10000
Accumulated Dep. A/c 50000 70000 Underwriting 15000 10000
commission
Provision for tax 30000 20000 Goodwill 10000 20000
Proposed Dividend 20000 15000 Land & Building 220000 190000
Creditor 80000 90000 Plant & Machinery 170000 310000
Bill payable 10000 -
O/S expense - 5000
700000 790000 700000 790000

3. Ques 5) Following information is available in respect of Three projects
Particulars Project A Project B Project C
Initial investment 400000 450000 400000
Annual Cash flow 130000 140000 100000
Working Life 6 years 7 years 8 years
Evaluate the projects on the basis of Pay back method , Post Pay back method.
Ques 6) Following information is available from the books of Vishnu ltd.
Particulars A B C
Cost of Machine 500000 600000 700000
Working life 8 years 7 years 6 years
A.C .F 160000 170000 190000
Scrap value 20000 - 30000
Evaluate on the basis of Pay back method, Post pay back method , PPBP index.
Ques 7) From the following balance Sheet Prepare Schedule of Change in Working
capital & Fund Flow Statement.
Liabilities 2008 2009 Assets 2008 2009
Sh. Capital 250000 300000 Plant & 50000 60000
Machinery
Debebture 30000 - Furniture 35000 15000
Pref. share - 70000 Stock 60000 105000
P/L A/c 15000 30000 Debtor 100000 150000
Sundry creditor 70000 50000 Bill receivable 20000 10000
Bill Payable 10000 20000 Prepaid Expense 30000 20000
Provision for tax 20000 - Cash 120000 140000
General Reserve 20000 30000
415000 500000 415000 500000