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Q 5. [A] From the following data, indicate the effect that the changes in the relevant items will have working capital: Particulars Jan 1, Dec 31, Particulars Jan 1, Dec 31, 2020 2020 2020 2020 Land 44000 68000 Goodwill 13000 13000 Debentures 20000 25000 Prepaid Expenses 70 300 Stock 30000 28000 Bills Payable 1500 900 Machinery 180000 180000 Bills Receivable 3000 2000 Trade Creditors 8000 5320 Mortgaged Loan 50000 40000

Q 5. [A] From the following data, indicate the effect that the changes in the relevant items will have working capital: Particulars Jan 1, Dec 31, Particulars Jan 1, Dec 31, 2020 2020 2020 2020 Land 44000 68000 Goodwill 13000 13000 Debentures 20000 25000 Prepaid Expenses 70 300 Stock 30000 28000 Bills Payable 1500 900 Machinery 180000 180000 Bills Receivable 3000 2000 Trade Creditors 8000 5320 Mortgaged Loan 50000 40000

CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter3: Income Sources
Section: Chapter Questions
Problem 9DQ
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Q 5. [A] From the following data, indicate the effect that the changes in the relevant items will have on the working capital: Particulars Jan 1, Dec 31, Particulars Jan 1, Dec 31, 2020 2020 2020 2020 Land 44000 68000 Goodwill 13000 13000 Debentures 20000 25000 Prepaid Expenses 70 300 Stock 30000 28000 Bills Payable 1500 900 Machinery 180000 180000 Bills Receivable 3000 2000 Trade Creditors 8000 5320 Mortgaged Loan 50000 40000 Cash 29000 9000 Equity Share Capital 100000 120000 Long Term Investments 10000 6250 Preference Share 120000 75000 Сapital Accrued Expenses 350 160 Trade Debtors 19000 20000 Short-term Debt 3220 5170 Your answer must indicate the overall and individual effect of changes in relevant items. [B] A Company's reported current year profit is Rs. 70000 after incorporating the following: Particulars Amount Particulars Amount Loss on Sale of Equipment 9000 Gain from sale of Assets 40000 Premium Redemption of 1500 Provision for Tax 22000 on Debentures Discount on issue of Debentures 2000 Dividend Income 4000 Depreciation on Machinery 20000 Transfer to General Reserve 5000 Depletion of Natural Resources 10000 Preliminary Expenses 1000 Interim Dividend 25000 Profit on Revaluation 2500 Loss on sale of Investment 1000 Find out the Funds from Operations.
Transcribed Image Text:Q 5. [A] From the following data, indicate the effect that the changes in the relevant items will have on the working capital: Particulars Jan 1, Dec 31, Particulars Jan 1, Dec 31, 2020 2020 2020 2020 Land 44000 68000 Goodwill 13000 13000 Debentures 20000 25000 Prepaid Expenses 70 300 Stock 30000 28000 Bills Payable 1500 900 Machinery 180000 180000 Bills Receivable 3000 2000 Trade Creditors 8000 5320 Mortgaged Loan 50000 40000 Cash 29000 9000 Equity Share Capital 100000 120000 Long Term Investments 10000 6250 Preference Share 120000 75000 Сapital Accrued Expenses 350 160 Trade Debtors 19000 20000 Short-term Debt 3220 5170 Your answer must indicate the overall and individual effect of changes in relevant items. [B] A Company's reported current year profit is Rs. 70000 after incorporating the following: Particulars Amount Particulars Amount Loss on Sale of Equipment 9000 Gain from sale of Assets 40000 Premium Redemption of 1500 Provision for Tax 22000 on Debentures Discount on issue of Debentures 2000 Dividend Income 4000 Depreciation on Machinery 20000 Transfer to General Reserve 5000 Depletion of Natural Resources 10000 Preliminary Expenses 1000 Interim Dividend 25000 Profit on Revaluation 2500 Loss on sale of Investment 1000 Find out the Funds from Operations.
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