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Question: The balance sheet of Best Manufacturers Ltd. as on 31st March, 2004 and 2005 are as follows:
Following additional information is also available:
(a) A new machinery was purchased for Rs.30,000 but old machinery costing Rs. 15,000 was sold for Rs.5,000, accumulated depreciation was Rs.8,000
(b) Rs.20,000, 5% Debentures were redeemed by purchase from open market @ Rs.96.
(c) Rs.36,000 investment were sold at book value
(d) 12% dividend was paid in Cash
(e) Rs. 15,000 was debited to Contingency Reserve for settlement of previous tax liability.
You are required to prepare a Schedule of Changes in Working Capital and a Statement showing-the Sources and Application of Funds.
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