Give your best efforts:--------

Q.1. The following information is given to you.

Increase in debtors Rs.35,000 Increase in Bank overdraft Rs.20,000

Decrease in Creditors Rs.30,000 Decrease in outstanding income Rs.5,000

Issue of share Rs.1,20,000 Purchase of fixed assets Rs.15,000

Fixed assets with accumulated depreciation Rs.3,000(Cost price) sold at Rs.4,000.

Redemption of debenture (Face Value Rs.1,00,000) at discount of 10%.

Investment costing Rs.40,000 sold at a loss of Rs.4,000.

Required:- Statement of working capital & Funds Flow Statement 5

Q.2. Extracts of balance sheets for the two years as follows:

Capital & Liabilities	Last Year Rs.	This year Rs.	Assets	Last year Rs.	This year Rs.
Share capital	1,20,000	2,40,000	Machinery	1,00,000	2,30,000
Share premium	50,000	65,000	Investment	50,000	1,10,000
15%Debenture	40,000	1,00,000	Goodwill	60,000	50,000
P/L account	---	50,000	P/L account	10,000	---
General reserve	10,000	25,000	Debenture discount	10,000	20,000

Additional information:-

Depreciate machinery by 10%. Dividend paid for the year Rs.5,000.

Required:- A) Funds or Loss from operation B) Funds flow statement 5

Q.3. What do you mean by Funds flow analysis? Show its objectives. 3

Q.4. Show differences between Funds flow statement & Balance sheet. 3

Q.5. Show differences between Funds/Loss from operation & Net profit. 2