Illustration 5.2

The comparative balance sheet of M/s Sume Ltd. as on 31st December, 1986 and 1987 were as follows Items 31st December From the data above your are required to prepare schedule of change in the working capital Answers should be properly explained

items 31 st December 1986 1987 Rs, Rs, Assets 1,02,000 1,10,000 Land and Building Plant and Machinery 56,000 44,000 Sundry Debtors 32,000 24,000 Inventory 70,000 61,000 Bills Receivable 23,000 17,000 Cash and Bank Balance 40,000 47,000 Total 3,23,000 3,03,000 Liabilities: Share capital 1,40,000 1,30,000 Debentures 38,400 28,600 Reserves 96,900 1,02,550 Provision for taxation 2,700 2,850 Proposed dividend 24,000 18,000 Bills payable 10,000 10,000 Bills payable 10,000 10,000 Sundry creditors 10,000 11,000 Total 3,23,000 3,03,000