В. Following is the comparative Balance Sheet of BL Co. as at 31st December: LIABILITIES 2018 2019 ASSETS 2018 2019 Share Capital 20,00,000 22,00,000 Goodwill 1,00,000 80,000 Debentures 10,00,000 6,00,000 Land & Building 8,40,000 13,20,000 General Reserve 4,00,000 4,00,000 Plant & 12,00,000 16,00,000 Machinery Profit &Loss 2,20,000 3,80,000 Stock Tax Provision 80,000 2,20,000 5,00,000 4,20,000 Debtors Creditors 1,00,000 80,000 6,00,000 4,80,000 Cash Bills payable 40,000 60,000 6,00,000 48,000 Preliminary Expenses Provision for Doubtful 60,000 48,000 60,000 40,000 Debts 39,00,000 39,88,000 39,00,000 39,88,000 ADDITIONAL INFORMATION: 1. During the year 2019, a part of the machinery costing Rs. 15,000 (Accumulated Depreciation thereon being Rs. 5,000) was sold for Rs. 6,000. 2. Dividend for Rs. 2,00,000 was paid during the year ended 2019. 3. Tax for Rs. 1,00,000 was paid during the year ended 2019. 4. Depreciation for the year 2019 was as follows: Land & Building Plant & Machinery Rs. 20,000 Rs. 1,00,000 You are required to prepare: (a) A schedule of change in working capital. (b) A statement showing sources and applications of funds.

В. Following is the comparative Balance Sheet of BL Co. as at 31st December: LIABILITIES 2018 2019 ASSETS 2018 2019 Share Capital 20,00,000 22,00,000 Goodwill 1,00,000 80,000 Debentures 10,00,000 6,00,000 Land & Building 8,40,000 13,20,000 General Reserve 4,00,000 4,00,000 Plant & 12,00,000 16,00,000 Machinery Profit &Loss 2,20,000 3,80,000 Stock Tax Provision 80,000 2,20,000 5,00,000 4,20,000 Debtors Creditors 1,00,000 80,000 6,00,000 4,80,000 Cash Bills payable 40,000 60,000 6,00,000 48,000 Preliminary Expenses Provision for Doubtful 60,000 48,000 60,000 40,000 Debts 39,00,000 39,88,000 39,00,000 39,88,000 ADDITIONAL INFORMATION: 1. During the year 2019, a part of the machinery costing Rs. 15,000 (Accumulated Depreciation thereon being Rs. 5,000) was sold for Rs. 6,000. 2. Dividend for Rs. 2,00,000 was paid during the year ended 2019. 3. Tax for Rs. 1,00,000 was paid during the year ended 2019. 4. Depreciation for the year 2019 was as follows: Land & Building Plant & Machinery Rs. 20,000 Rs. 1,00,000 You are required to prepare: (a) A schedule of change in working capital. (b) A statement showing sources and applications of funds.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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