Academic MBA Question:
Question for IGNOU MBA – You are required to prepare a Funds Flow Statement for Alpha Ltd. for the year 2018. The balance sheets of Alpha Ltd. for the year 2017 and 2018 are as given below:
- 1. In 2018 depreciation on plant has been provided for Rs. 18,000 and no depreciation has been charged on land and building.
- 2. A piece of land has been sold out and the balance has been revalued, profit on such sale and revaluation being transferred to capital reserve. There is no other transaction affecting the Capital Reserve.
- 3. A plant was sold for Rs. 12,000. The written down value of the plant was Rs. 15,000.
- 4. Dividend received amounted to Rs. 2,100 including dividend of Rs. 600 from pre acquisition profit of subsidiary.
- 5. An interim dividend of Rs. 10,000 has been paid during 2018.