From the following summarized financial statement of EXWYE Ltd. as at 31st December 2016 and 31st December 2017 respectively, prepare: (i) a Statement of Changes in Working Capital during the year 2017; and (ii) a Statement showing Sources and Applications of Funds during the same period.
Balance Sheet of EXWYE Ltd. as at 31st December 2016 and 2017
Note 31.12.2016 31.12.2017
Particulars No. (1) (2) (3) (4)
LEQUITY AND LIABILITIES
1. Shareholders' Funds:
(a) Share Capital (1) 40,00,000 37,00,000
(b) Reserves and Surplus (2) 11,20,000 13,00,000
2. Share Application Money Pending Allotment: -
3. Non-current Liabilities:
(a) Long-term borrowings - Secured Loans 8,80,000 9,70,000
4. Current Liabilities:
(a) Short-term Borrowings
(b) Trade Payables 16,00,000 25,00,000
(c) Other Current Liabilities
(d) Short-term Provisions - Proposed Dividend 4,00,000 5,30,000
TOTAL 80,00,000 90,00,000
ASSETS
1. Non-current Assets:
(a) Fixed Assets - Tangible Assets (3) 32,00,000 34,75,000
(b) Non-current Investment - Trade Investment 8,00,000 8,50,000
2. Current Assets:
(a) Current Investments
(b) Inventories 16,00,000 26,00,000
(c) Trade Receivables 20,00,000 18,75,000
(d) Cash and Cash Equivalents 50,000 25,000
(e) Short-term Loans and Advances 3,50,000 1,75,000
(f) Other Current Assets
TOTAL 80,00,000 90,00,000
Notes to Accounts:
Particulars 31.12.2016 31.12.2017
1. Share Capital issued, Subscribed and Paid-up Capital
Equity Shares of 10 each fully paid 30,00,000 32,00,000
10% Redeemable Preference Shares of 100 each fully paid 10,00,000 5,00,000
TOTAL 40,00,000 37,00,000
2. Reserve and Surplus
Securities Premium
i. Capital Redemption Reserve
ii. General Reserve
iv. Profit and Loss Account 3,00,000
2,70,000
3,00,000
5,00,000
3,00,000
3,20,000
4,30,000
11,20,000
13,00,000
Tangible Assets
Land at cost
Building at cost less depreciation
Plant and Machinery 2,00,000
2,00,000
3,00,000
2,25,000
27,00,000
30,00,000
32,00,000
34,75,000
(a) During the year, 5,000 redeemable preference shares of 100 each were redeemed at a premium of 10%. The premium was paid out of Securities Premium Account. For this purpose, 20,000 equity shares were issued fully paid for cash at a premium of 10%. The Capital Redemption Reserve was created out of transfers from General Reserve.
(b) Depreciation provided during the year on:
(c) A plant (original cost) 95,000. Depreciation provided till 31.12.2016 78,000 was sold for 35,000 and the profit on sale transferred to Profit and Loss Account.
(c) Dividend proposed for 2016 was fully paid in 2017.
