Calculate ‘Funds from operations’ from the following income statement:

Income Statement Rs. Rs.

To Rent Paid 25,000 By Gross Income 4,80,000 To Salaries 1,00,000 By Discount received from To Provision for creditors 8,000 Depreciation 50,000 By Commission received 12,000 To Commission paid 5,000 By Vehicle A/c (Profit on To Provision for Taxation 5,000 sale) 3,000 To Provision for Doubtful By Refund of Tax 2,000 Debts 1,50,000 By Dividend 10,000 To Investment A/c (Loss on Sale) 3,000 To Cost of Issue of Shares Written off 10,000 To Provision for Legal 2,000 Damages 1,65,000 _______ To Net Income 5,15,000 5,15,000 3 A. Calculate the funds form operations from the summarised balance sheets of Ashak Ltd.
As on As of 31.

12.2007 31.

12.2008 Rs. Rs.

General Reserve 78,900 89,000 Goodwill 34,560 23,450 Preliminary Expenses 12,345 3,450 Provision for Depreciation 33,330 44,440 Provision for Doubtful Debts 2,340 3,690 Long-term Loan 48,000 36,000 Profit & Loss Appropriation A/c 1,23,450 1,36,900]