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Question: The comparative Balance Sheets of B. Company Ltd. as on year ending 31-3-04 and 31-3-05 prepare
The net profit for the year (after providing for depreciation Rs. 40,000, writing off Preliminary expenses Rs. 7,200 and making provision for taxation (Rs. 32,000) amounted to Rs. 38,000.
The company sold during the year old machinery costing Rs. 9,000 for Rs. 3,000. The accumulated depreciation on the sold machinery was Rs. 8,000. A portion of the Company’s investment became worthless and was written off to general reserve. The cost of such investment was Rs. 50,000.
During the year the Company paid an interim dividend of Rs. 10,000 and the directors have recommended a final dividend of Rs. 15,000 for the year 2004-05.
(a)Statement of sources and application of funds
(b)Schedule of Working Capital changes
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