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LOVELY PROFESSIONAL UNIVERSITY

Home Work - II

Lovely School of : Management (LSM) Department of Management

Name of the faculty member: Aarti

Course No: COM 309 Course title: Management Accounting

Class: B Com Prof Semester: 5th Section: S3807 Batch: 2008-2011

Max. Marks: 15 Date of Allotment: 9/9/2010 Date of Submission: 27/9/2010

PART- A

Ques1: From the following prepare the statement of changes in working capital:

Particulars 2001 2002

Share capital

Profit and loss a/c

Reserves

S.creditors

Bills payable

Bank overdraft

Provision for taxation

Goodwill

Land and building

Plant and machinery

Stocks

S.debtors

Bills Receivables

Cash

2,00,000

39,690

50,000

39,500

33,780

59,510

40,000

4,62,480

-

1,12,950

1,48,000

1,11040

85,175

2315

2500

2,60,000

41,220

50,000

41,135

11,525

-

50,000

4,53,880

20,000

1,16,200

1,44,250

97,370

72,625

735

2700

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4,62,480 4,53,880

During the Year ending 31st Dec 2002, an interim Dividend of Rs 2600 was paid.

Income tax paid during the year amounted to Rs25,000

The net profit for the year before tax was RS 62,530.

Ques2: During the year 2002, Ran ltd earned a Profit of Rs 1,85,720 after adjusting the

following:

Provision for bad debts Rs 1500

Salaries Rs 8,500

Depreciation written off Rs 15,300

Profit on sale of fixed assets Rs 14,000

Discount on debenture written off Rs 20,000

Loss on sale of investment RS 2000

Preliminary expenses written off Rs 8,000

Proposed Dividend RS 50,000

Transfer to debenture redemption Rs 20,000

Dividend received Rs 4500

Calculate funds from operation.

Ques3: From the following balance sheet prepare the statement of changes in working

capital and fund flow statement.

Liabilties 2008(Rs) 2009(Rs) Assets 2008(Rs) 2009(Rs)

Share capital

Share premium

Reserves

8% debentures

1,20,000

20,000

14,000

-

1,60,000

22,000

16,400

60,000

Building

Machinery

Furniture

Inventories

1,18,000

40,000

6,000

20,000

1,90,000

80,000

3,000

30,000

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Cooperation taxes

Sundry creditors

P&L a/c

20,000

70,000

36000

28,000

84,000

46,000

Sundry

debtors

Cash

80,000

16,000

84,000

29,400

2,80,000 4,16,400 2,80,000 4,16,400

During the year machinery was written off by Rs 30,000and furniture by Rs 2,000.

Part B

Ques4:The following details are available from the balance sheet of SSk ltd

Particulars 2006(Rs) 2005(Rs)

Cash balance

Trade debtors

Inventory

Land

Plant and machinery

Total

Liabilities and capital

Trade creditor

Debentures

Provision for depreciation on plant

Equity share capital

Retained earnings

total

60,000

1,00,000

1,20,000

80,000

2,50,000

6,10,000

40,000

90,000

80,000

2,40,000

1,60,000

6,10,000

50,000

75,000

1,40,000

1,00,000

2,00,000

5,65,000

30,000

1,50,000

60,000

2,00,000

1,25,000

5,65,000

Cash dividend of Rs 25,000 has been paid during the year.

You are required to prepare cash flow statement.

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Ques 5: From the following prepare Fund Flow statement

Particular 2002 2003 Assets 2002 2003

Equity share capital

Redeemable

preference share

Reserves

Profit and loss

account

Proposed dividend

Creditors

Bills payable

Provision for taxation

3,00,000

1,50,000

40,000

30,000

42,000

55,000

20,000

40,000

6,77,000

4,00,000

1,00,000

70,000

48,000

50,000

83,000

16,000

50,000

8,17,000

Goodwill

Land and

Building

Plant

Debtors

Stock

Bills receivable

Cash in hand

Cash ar Bank

1,15,000

2,00,000

80,000

1,60,00

77,000

20,000

15,000

10,000

6,77,000

90,000

1,70,000

2,00,000

2,00,000

1,09,000

30,000

10,000

8,000

8,17,000

It is also given that:

Depreciation of Rs 20,000 on land and building and Rs10,000 on plant has been charged in

2003.

Interim dividend of Rs 20,000 has been paid in 2003.

Income tax Rs 35,000 has been paid during 2003.

Ques 6: From the following prepare Cash Flow statement

Particular 2002 2003 Assets 2002 2003

Equity share capital

Redeemable

preference share

Reserves

Profit and loss

account

Proposed dividend

3,00,000

1,50,000

40,000

30,000

42,000

4,00,000

1,00,000

70,000

48,000

50,000

Goodwill

Land and

Building

Plant

Debtors

1,15,000

2,00,000

80,000

1,60,00

77,000

90,000

1,70,000

2,00,000

2,00,000

1,09,000

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Creditors

Bills payable

Provision for taxation

55,000

20,000

40,000

6,77,000

83,000

16,000

50,000

8,17,000

Stock

Bills receivable

Cash in hand

Cash ar Bank

20,000

15,000

10,000

6,77,000

30,000

10,000

8,000

8,17,000

It is also given that:

Depreciation of Rs 20,000 on land and building and Rs10,000 on plant has been charged in

2003.

Interim dividend of Rs 20,000 has been paid in 2003.

Income tax Rs 35,000 has been paid during 2003

Date: Signature of faculty:

Remarks of HOD

Signature of HOD with date

Remarks by HOS

Signature of HOS with date