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Illustration 4.5. From the following Comparative Balance Sheet and Income Statement of ABC Ltd. prepare a statement of Changes in Financial Position: ABC Limited COMPARATIVE BALANCE SHEET For the year ended 31st Dec 2003 and 2004 2003 2004 Particular Current Assets: Cash ebtors Stock 70,000 40,000 1.25.000 50.000 45,000 90.000 t24 2.35.000 1.85.000 1,50.000 22.000 82.000 2.88.000 5.23.000 1.00.000 2.00.000 B0.000 2.20.000 4,05,000 Total Current assets Fixed Asset Land and Building plant and Machinery Less: Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities: Creditors Salaries Payable Provision for tax Provision for Dividend Total Current Liabilities Long Term Liabilities: Bank Loan Debentures Total Long term Liabilities Total Liabilities Owner's Equity Share Capital Share Premium Reserve and surplus Total Equities 25,000 15,000 50.000 40.000 1.30.000 30,000 10.000 60.000 40.000 1.40.000 23.000 15,000 1.20.000 1.50.000 1.43.000 1.65.000 2.73,000 3.05.000 75,000 175,000 12 500 7500 62,500 17,500 2,50.000 1,00.000 5.23,000 4,05,000 Rs. 5,00,000 2.10.000 2.90.000 ABC Limited Income Statement For the year ended 31st Dec. 2004 Particulars Rs. Sales Less: Cost of Goods Sold Gross Profit Less: Operating Expenses: Office and Administration Exp. 45,000 Selling and Distribution Exp. 25.000 Interest 12,000 Depreciation 22.000 Operating Profit Add: Gain on sale of Plant Total Profit Less: Income Tax Net Profit 1.04.000 1.86.000 6,000 1.92.000 85.000 1,07,000 Additional Information: 1) During the year plant Rs 50,000 (accumulated depreciation Rs. 20.000) was sold 2) The debentures of Rs. 30.000 were converted into share capital at per 3) The company declared a cash dividend of Rs.40.00) and a stock dividend of Rs. 20,000 for the year 4) The company issued 5,000 additional shares, par value Rs.10 per share, at premium of 10% during the year