The following are the summarized balance sheets of ABC Ltd.

As at 31st December 2013 and 2014

Liabilities 2013 (Rs.) 2014 (Rs.) Assets 2013 (Rs.) 2014 (Rs.)
Equity and 1,50,000 1,50,000 Fixed Assets 1,45,000 1,60,000
shares
Preference - 60,000 Investments - 30,000
Shares
General 30,000 40,000
Reserves
P&L Account 25,000 70,000
Current Liabilities Current Assets
Creditors 20,000 15,000 Stock 45,000 65,000
Overdraft 5,000 - Debtors 20,000 40,000
Bills Payable - 3,000 Bills receivable 6,000 3,000
Taxation 10,000 15,000 Prepaid 6,000 20,000
Provision expenses
Proposed 20,000 25,000 Cash 25,000 15,000
dividend
Advances 13,000 45,000
2,60,000 3,78,000 2,60,000 3,78,000
Prepare Schedule of changes in working capital

Solution:
Schedule of changes in working capital
Changes in working capital
Particulars 2013 (Rs.) 2014 (Rs.) Increase Decrease
Current Assets
Stock 45,000 65,000 20,000
Debtors 20,000 40,000 20,000
Bills receivable 6,000 3,000 3,000
Prepaid expenses 6,000 20,000 14,000
Cash 25,000 15,000 10,000
Advances 13,000 45,000 32,000
Total (A) 1,15,000 1,88,000
Current Liabilities
Creditors 20,000 15,000 5,000
Overdraft 5,000 - 5,000
Bills Payable - 3,000 3,000
Taxation Provision 10,000 15,000 5,000
Proposed dividend 20,000 25,000 5,000
Total (B) 55,000 58,000
Net W.C (A-B) 60,000 1,30,000

Increase in W.C 70,000 70,000

1,30,000 1,30,000 96,000 96,000