fund flow ppt

1. Fund Flow
Statement
S R TRIPATHI
MBA

2. Liabilities 2009 2010 Assets 2009 2010
Share Capital 1,00,000 1,25,000 Land & Building 1,00,000 95,000
General Reserve 25,000 30,000 Plant 75,000 84,500
P&L A/C 15,250 15,300 Stock 50,000 37,000
Bank Loan 35,000 - Debtors 40,000 32,100
Creditors 75,000 67,600 Cash in Hand 250 300
Provision for Tax 15,000 17,500 Cash at Bank - 4,000
Goodwill - 2,500
2,65,250 2,55,400 2,65,250 2,55,400
Dividend of Rs. 11,000 was paid during the year 2010
Depreciation charged on plant was Rs. 7,000
Provision for income tax made during 2010 was Rs. 16,500

3. Fund Flow Statement
Sources of Fund Application of funds
Fund from operation Fund loss from operation
Issue of share Capital Redemption of preference share
Raising of Long term Loan Redemption of debenture
Receipts from partly paid share Repayment of long term Loan
Sale of Fixed Assets Purchases of Fixed Assets
Non trading Receipts Purchases of long term investment
Sale of Investment Non trading payment
Decrease in Working Capital Payments of dividend
Payment of Tax
Increase in Working Capital

4. Fund from Operation
To loss given for the last year By profit given for the last year
To depreciation By Gain on sale of assets
To Loss on sale of Assets By refund of tax
To Discount on Issue of share and debenture By dividend received
To Loss on issue of share and Debenture By Increase in the value of Goodwill
To Goodwill written off By Excess Depreciation
To Preliminary Expenses written off By Transfer from Reserve
To Provision for tax By fund from operation
To Pro. for dividend/interim dividend
To Transfer to reserve
To fund loss from operation
To profit given for the current year By loss given for the current year

5. Balance sheet of X Ltd.
Net profit for 2007-08 before tax and dividend was Rs. 63,000.
Provision for tax made during 2007-08 was Rs. 23,000 and actual tax paid was Rs. 18,000
Proposed dividend for 2007-08 was Rs. 15000 and the payment of the dividend was 10,000.
Depreciation charged in current year was Rs. 80,000.
Bonus shares issued out of share premium Rs. 50,000.
Liabilities 2007 2008 Assets 2007 2008
Share Capital 5,00,000 6,50,000 Goodwill 20,000 15,000
Share Premium 50,000 - Trade Investment 1,50,000 2,00,000
P&L Account - 25,000 Fixed Assets 5,50,000 5,50,000
Debenture 2,00,000 - Debtors 60,000 40,000
Bank Overdraft 80,000 1,00,000 Stock 1,20,000 80,000
Creditors 60,000 75,000 Cash 12,000 5,000
Proposed Dividend 10,000 15,000 Prepaid Expenses 8,000 -
Provision for Taxation 20,000 25,000
9,20,000 8,90,000 9,20,000 8,90,000

6. Liabilities 2002 2003 Assets 2002 2003
Equity Share Capital 3,00,000 4,00,000 Goodwill 1,00,000 80,000
8% Preference Capital 1,50,000 1,00,000 Land and Building 2,00,000 1,70,000
Capital Reserve - 20,000 Plant 80,000 2,00,000
General Reserve 40,000 50,000 Investment 20,000 30,000
P&L A/C 30,000 48,000 Sundry Debtors 1,40,000 1,70,000
Proposed Dividend 42,000 50,000 Stock 77,000 1,09,000
Sundry Creditors 25,000 47,000 Bills Receivable 20,000 30,000
Bills payable 20,000 16,000 Cash in Hand 15,000 10,000
Liabilities for Expenses 30,000 36,000 Cash at Bank 10,000 8,000
Provision for Taxation 40,000 50,000 Preliminary Expenses 15,000 10,000
6,77,000 8,17,000 6,77,000 8,17,000
• A piece of Land has been sold out in 2003 and the profit on sale has
been credited to capital reserve
• A machine has been sold for Rs. 10,000. The written down value of
the machine was Rs. 12,000.Depreciation of Rs. 10000 is charged on
plant account in 2003.
• An interim dividend of Rs. 20,000 .