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Schedule of changes in working capital is prepared on the
basis of current assets and current liabilities given in the
balance sheet for two years. It is prepared in the following
manner:
| |
Particulars |
|
Previous Year
Rs. |
|
Current Year
Rs. |
|
Increase
Rs. |
|
Decrease
Rs. |
| |
Current Assets: |
|
|
|
|
| |
Cash in hand |
XXX |
XXX |
|
|
| |
Cash at Bank |
XXX |
XXX |
|
|
| |
Bills Receivable |
XXX |
XXX |
|
|
| |
Sundry Debtors |
XXX |
XXX |
|
|
| |
Stock |
XXX |
XXX |
|
|
| |
Accrued Income |
XXX |
XXX |
|
|
| |
Marketable Securities |
XXX |
XXX |
|
|
| |
Prepaid Expenses |
XXX |
XXX |
|
|
| |
|
XXX |
XXX |
|
|
| |
Current Liabilities: |
|
|
|
|
| |
Sundry Creditors |
XXX |
XXX |
|
|
| |
Bills Payable |
XXX |
XXX |
|
|
| |
Bank Overdraft |
XXX |
XXX |
|
|
| |
Outstanding Expenses |
XXX |
XXX |
|
|
| |
Amounts received in advance |
XXX |
XXX |
|
|
| |
|
XXX |
XXX |
|
|
| |
Working Capital (CA – CL) |
|
|
|
|
| |
Net increase/decrease in working capital |
|
|
|
|
| |
|
XXX |
XXX |
XXX |
XXX |
Increase in the amount of current asset will be shown
in the increase column and decrease in the amount of current
assets will be shown in decrease column. Decrease in the
amount of current liabilities will be shown in the increase
column and increase in the amount of current liabilities
will be shown in the decrease column.
If the total of increase column is more than that of the
decrease column, net result will be net increase in working
capital and if the total of decrease column is more than
that of the increase column, result will be net decrease
in working capital. |
|
Accounts
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