QuestionNo.3:ThesummarizedBalanceshetsattheendofthelasttwofinancialyearsof shahnorLtdareasfolows:

2

(SummarizedBalanceShet) at31December

204 Rs.

Capital:isuedandfuly

Paidordinaryshares 10,00

Redemablepreference Shares(redemable Atpar) 2,0 Retainedearnings 2,40 Bankoverdraft - Tradecreditor 4,60

19,0

205 Rs.

204 Freholdproperly7,0 Fixtureandfiting4,0

205 14,00 3,90

4,40 5,80

==== 28,10

Additionalinformation Thelasttimethecompanyisuedsharesforcashwasin198.

19,0

stockintrade TradeDebtors

BalanceatBank

2,50 3,70

1,80 19,0

- 4,70 3,0 1,40

28,10

Thesurplusarisingfromtherevaluationoffrehold propertygaverisetoa capitalizationisue.

Alfixturesandfitingheldat31December.204wereboughtin19,atatotalcostof

3

Rs.10,0weresoldforRs.2,30.

SomefixtureswereboughtintheyearforRs.2,0whilesomefixtureswithacostofRs. 3,0weresoldforRs.2,30.

Theonlyfixedasetsforwhichdepreciationisprovidedarefixturesandfitingatthe anualrateof10% ofthecostofasetsheldattheendofeachfinancialyear.

Required:AfundsFlowstatementandaCashFlowStatementfortheyearended31December 205.