From the following balance sheet of Sony Ltd., prepare Schedule of Changes in Working Capital and Funds Flow statement showing the working clearly Liabilities 2007 2008 Assets 2007 2008 Rs. Rs. Rs. Rs.
Share Capital 1,10,000 1,30,000 Goodwill 10,000 —
Profit & Loss A/c 75,000 79,000 Fixed Assets 1,40,000 1,70,000 Accumulated Dep. 40,000 24,000 Short Term 35,000 15,000 Current Investments Other Liabilities 1,10,000 1,04,000 Current Assets 1,50,000 1,52,000 3,35,000 3,37,000 3,35,000 3,37,000 Depreciation provided during the year ending 31st Dec. 2008 amounted to Rs.13,500.
A machinery costing Rs.10,000 (accumulated depreciation Rs. 3,000) sold during the year for Rs. 6,000. In the past years, excess depreciation had been charged to the profit and loss account.