Sigma International Ltd (SIL) provides the following balance sheet for the year ending March 31, 2009: During
Question:
Sigma International Ltd (SIL) provides the following balance sheet for the year ending March 31, 2009:
During the year 2009–10, the following transactions took place:
(i) Cash sales ₹5,00,000 and credit sales ₹2,56,000.
(ii) Bad debts written off during the year were ₹2,300 and discount allowed to customers was₹700. Customers paid ₹75,000 during the year.
(iii) During the year cash purchase was ₹ 90,000 and credit purchase was ₹ 1,34,000; ₹ 67,000 was paidto suppliers.
(vi) 23,000; 45,000; 56,000; and 20,000 was paid as manufacturing, administrative, selling and interest onloan for the year.
(v) During the year company paid interim dividend of ₹ 45,000 and final dividend of ₹ 25,000. Thecompany also paid tax of ₹ 67,000.
(vi) ₹ 45,000 was transferred to general reserve during the year.
(vii) Depreciation on land and building was provided ₹ 24,000.
(viii) Goodwill written off ₹ 15,000.
(ix) During the year equity shares of face value ₹ 1,50,000 were issued at 10% premium, whereaspreference shares were redeemed at par.
(x) Dividend on preference shares was also paid.
Discussion Questions
1. Prepare a balance sheet for the year ending March 31, 2010 and prepare a fund fl ow statement.
2. Carry out inferences from fund fl ow statement.
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