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
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Proper descriptive solution of both (a) and (b)
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.
Transcribed Image Text: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.
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