Q.5 From the following data of Jagdish Company prepare (a) a statement ofsource and uses of working capital (funds) (b) a schedule of changes in workingcapitalAssets 2008 2007Cash 1,26,000 1,14,000Short-term investment 42,400 20,000Debtors 60,000 50,000Stock 38,000 28,000Long term Investment 28,000 44,000Machinery 2,00,000 1,40,000Building 2,40,000 80,000Land 14,000 14,000Total 7,48,400 4,90,000Liabilities and EquityAccumulated depreciation 1,10,000 60,000Creditors 40,000 30,000Bills Payable 20,000 0,000Secured loans 2,00,000 1,00,000Share capital 2,20,000 1,60,000Share premium 24,000 NilReserves and surplus 1,34,400 1,30,000Total 7,48,400 4,90,000Income statementSales 2,40,000Fall Drive 2011Cost of goods sold 1,34,600Gross Profit 1,05,200Less Operating expenses:Depreciation – machinery 20,000Depreciation – building 32,000Other expenses 40,000 92,000Net profit from operation13,200Gain on sale on long-term investment 4,800Total 18,000Loss on sale of machinery 2,000Net Profit 16,000Adjustments:1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was soldduring the year [Accumulated depreciation on machinery is Rs.18000 afteradjusting depreciation on machinery sold]. Proceeds from the sale ofmachinery were Rs.60002) Dividends paid during the year Rs.11600

Sneha Dutta , 13 Years ago

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