You are required to prepare a Schedule of changes in working capital and a Funds Flow Statement

You are required to prepare a Schedule of changes in working capital and a Funds Flow Statement from the Balance Sheets of Amazon Ltd as on 31st Dec. 2008 and 2009.

Liabilities	2008 Rs.	2009 Rs.	Assets	2008 Rs.	2009 Rs.
Share capital Gen. Reserve P&L A/c Creditors Bills payable Provision for taxation Provision for doubtful debts.	2,00,000 28,000 32,000 16,000 2,400 32,000 800	2,00,000 36,000 26,000 10,800 1,600 36,000 1,200	Goodwill Buildings Plant Investments Stock Bills receivable Debtors Cash & Bank balance	24,000 80,000 74,000 20,000 60,000 4,000 36,000 13,200	24,000 72,000 72,000 22,000 46,800 6,400 38,000 30,400

                                          3,11,200    3,11,600                                              3,11,200    3,11,600

Additional information:

a)  Depreciation provided on plant was Rs. 8,000 and on Buildings Rs. 8,000

b)  Provision for taxation made during the year Rs. 38,000 c)  Interim dividend paid during the year Rs. 16,000

Schedule showing change In working capital

1996            1997         lncrease       Decrease

Current Assets
Cash	13,200	30,400	17,200	----
Debtors	36,000	38,000	2,000	----
B.R.	4,000	6,400	2,400	----
Stock	60,000	46,800	----	13,200
Total (A)	1,13,200	1,21,600

Fund Flow Statement

Provision for doubtful debts	800	1,200	---	400
Bills payable	2,400	1,600	800	---
Creditors	16,000	10,800	---	---
Total (B)	19,200	13,600
Working capital (A-B)	94,000	1,08,000
Increase in working capital	14,000	---	---	14,000
	1,08,000	1,08,000	27,600	27,600

Provision for taxation A/c

To Bank-tax paid	34,000         By Balance b/d		32,000
To Balance c/d	36,000         By P & L a/c		38,000
70,000                                                                       70,000 Plant A/c
To Balance b/d	74,000	By Depreciation	8,000
To Bank-purchase	6,000	By Balance c/d	72,000
	80,000		80,000

Building A/c

To Balance b/d               80,000        By Depreciation                     8,000

By Balance c/d                    72,000

Investment A/c To Balance b/d 20,000    By Balance c/d 22,000 To Bank-purchase 2,000 22,000 22,000 Adjusted Profit & Loss A/c

80,000                                                       80,000

To Transfer to general reserve	8,000	By Balance b/d	32,000
To Provision for tax	38,000	By Fund from operation	72,000
To depreciation on:
-plant	8,000
-Building	8,000
To Interim dividend	16,000
To Balance c/d	26,000
	1,04,000		1,04,000

General Reserve A/c

To Balance c/d                36,000        By Balance b/d                28,000

By P & L a/c                       8,000

                                             36,000                                                    36,000    

Fund Flow Statement

Sources                                                              Applications

Funds from operation                  72,000        Purchase of plant                                        6,000

	Tax paid	34,000
	Purchase of investment	2,000
	Interim dividend paid	16,000
	Increase in working capital	14,000
72,000		72,000