Inflow/Sources of Funds |
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|
Inflow/Sources of Funds |
There will be an inflow, when, on account of the transaction, there is
| Balance Sheet of M/s __ as on 30th June __ | |||
|---|---|---|---|
| Liabilities | Amount | Assets | Amount |
| Non-Current Liabilities Current Liabilities | 89,00,000 15,00,000 | Non-Current Assets Current Assets | 80,00,000 24,00,000 |
| 1,04,00,000 | 1,04,00,000 | ||
From the above balance sheet,
| Working Capital | = | Current Assets - Current Liabilities |
| = | 24,00,000 - 15,00,000 | |
| = | 9,00,000 | |
| (Or) | = | Non-Current Liabilities - Non-Current Assets |
| = | 89,00,000 - 80,00,000 | |
| = | 9,00,000 |
| Dr. Bank a/c Cr. Land a/c | Current Asset Non-Current Asset | Increase Decrease |
After taking into account the affect of the above transaction,
| Current Assets (Changed) | = | Current Assets (old) + Increase |
| = | 24,00,000 + 5,60,000 | |
| = | 29,60,000 |
| Non-Current Asset (Changed) | = | Non-Current Asset (old) - Decrease |
| = | 80,00,000 - 5,60,000 | |
| = | 74,40,000 |
| Working Capital (Changed) | = | Current Assets (Changed) - Current Liabilities |
| = | 29,60,000 - 15,00,000 | |
| = | 14,60,000 | |
| (Or) | = | Non-Current Liabilities - Non-Current Assets (Changed) |
| = | 89,00,000 - 74,40,000 | |
| = | 14,60,000 |
Working capital has changed from 9,00,000 to 14,60,000.
| Dr. Creditors a/c Cr. Investments a/c | Current Liability Non-Current Asset | Decrease Decrease |
After taking into account the affect of the above transaction,
| Current Liability (Changed) | = | Current Liabilities (old) - Decrease |
| = | 15,00,000 - 2,90,000 | |
| = | 12,10,000 |
| Non-Current Asset(Changed) | = | Non-Current Assets (old) - Decrease |
| = | 80,00,000 - 2,90,000 | |
| = | 77,10,000 |
| Working Capital (Changed) | = | Current Assets - Current Liabilities (Changed) |
| = | 24,00,000 - 12,10,000 | |
| = | 11,90,000 | |
| (Or) | = | Non-Current Liabilities - Non-Current Assets (Changed) |
| = | 89,00,000 - 77,10,000 | |
| = | 11,90,000 |
Working capital has changed from 9,00,000 to 11,90,000.
| Dr. Bills Receivable a/c Cr. Partners Capital a/c | Current Asset Non-Current Liability | Increase Increase |
After taking into account the affect of the above transaction,
| Current Assets (Changed) | = | Current Assets (old) + Increase |
| = | 24,00,000 + 85,000 | |
| = | 24,85,000 |
| Non-Current Liability (Changed) | = | Non-Current Liability (old) + Increase |
| = | 89,00,000 + 85,000 | |
| = | 89,85,000 |
| Working Capital (Changed) | = | Current Assets (Changed) - Current Liabilities |
| = | 24,85,000 - 15,00,000 | |
| = | 9,85,000 | |
| (Or) | = | Non-Current Liabilities (Changed) - Non-Current Assets |
| = | 89,85,000 - 80,00,000 | |
| = | 9,85,000 |
Working capital has changed from 9,00,000 to 9,85,000.
| Dr. Creditors a/c Cr. Debentures a/c | Current Liability Non-Current Liability | Decrease Increase |
After taking into account the affect of the above transaction,
| Non-Current Liabilities (Changed) | = | Non-Current Liabilities (old) + Increase |
| = | 89,00,000 + 4,00,000 | |
| = | 93,00,000 |
| Current Liability (Changed) | = | Current Liability (old) - Decrease |
| = | 15,00,000 - 4,00,000 | |
| = | 11,00,000 |
| Working Capital (Changed) | = | Current Assets - Current Liabilities (Changed) |
| = | 24,00,000 - 11,00,000 | |
| = | 13,00,000 | |
| (Or) | = | Non-Current Liabilities (Changed) - Non-Current Assets |
| = | 93,00,000 - 80,00,000 | |
| = | 13,00,000 |
Working capital has changed from 9,00,000 to 13,00,000.
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