The following are the summarised trial balance of Honesty Ltd.. as at 31st December, 1991. and December, 1992.

31st. Dec. 1991 31st. Dec.1992 Dr. Cr. Dr. Cr.

Issued Share Capital Rs. 8,00,000 Rs. 8,00,000 Capital Reserve 2,00,000 8% Debentures 2,50,000 Discount on Issue of Debentures Rs.5.000 Land and Building Rs. 5,00,000 4,00,000 Plant & MachineryRs. Rs. 10,00,000 12,50,000 Provision for Depreciation on Fixed Assets 4,00,000 5,00,000 Profit and Loss Account-Balance on 1st Jan. 3,00,000 4,50,000 Net Profit for the year 2,30,000 3,00,000 Dividend for the previous year 80,000 80,000 Provision for Doubtful Debts 20,000 35,000 Trade Investments (at cost) 1,00,000 3,00,000 Current Assets 7,00,000 8,50,000 Current Liabilities 3,50,000 2,50,000 Bank Overdraft _________ 2,80,000 1,00,000 23,80,000 23,80,000 28,85,000 28,85,000 The following additional information is available:
(i) During the year, Land and Building having an original cost of Rs. 1,00,000 and a written down value of Rs. 75,000 have been sold for Rs. 3,00,000. The capital profit has been transferred to Capital Reserve and the profit equivalent to the depreciation written off in the past has been included in the profit for the year.
(ii) On 1st January, 1992 the company issued debentures of a face value of Rs. 2,50,000 at a discount of 5 per cent. Part of the discount has been written off out of the profits.
Prepare a statement of sources and application of funds during the year.