Here is a compilation of top six accounting problems on fund flow statement with its relevant illustrations.

Problem 1:  

From the following information relating to A Ltd., prepare Funds Flow Statement:

Problem 2: 

Ramco Cements presents the following information and you are required to calculate funds from operations:



Problem 3:  

The Balance Sheets of National Co. as on 31st December, 2003 and 31st December 2004 are as follows:

Additional Information:


(1) Rs. 50,000 depreciation has been charged on Plant and Machinery during 2004.

(2) A piece of Machinery was sold for Rs. 8,000 during the year 2004. It had cost Rs. 12,000; depreciation of Rs. 7,000 had been provided on it.

Prepare a Schedule of changes in Working Capital and a Statement showing the Sources and Application of Funds for 2004.

Problem 4:

From the following Balance Sheets of X Ltd. make out:

(i) Statement of Changes in Working Capital


(ii) Fund Flow Statement:

Problem 5:


The following are the summarised Balance Sheets of a company as on 31st December 2003 and 2004:


Additional information is as follows:


(1) Furniture which cost Rs. 5,000, written down value Rs. 1,000 was sold during the year 2004 for Rs. 2,000.

(2) Plant and Machinery which cost Rs. 20,000 and in respect of which Rs. 13,000 had been written off as depreciation was sold during the year for Rs. 3,000.

(3) The dividend of 2003 was paid during 2004.

You are required to prepare (a) a Statement of changes in working capital during 2004 and (b) Funds flow statement for the year 2004.

Problem 6:


Following are the comparative Balance Sheets of Good Luck Co. as at 31st December: