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Application of Funds

The document outlines how funds will be applied, including fixing assets like plant/machinery, land/buildings, and furniture. It also covers intangible assets like goodwill and capital works in progress. Long term investments such as government bonds are included. Current assets like quick assets of tools, debtors, bills receivable and shares are listed, as well as non-quick assets like prepaid rent and livestock. Current liabilities are subtracted from current assets to determine net working capital. Total funds employed is calculated as the sum of net fixed assets, long term investments, and net working capital.

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Taha Merchant
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47 views

Application of Funds

The document outlines how funds will be applied, including fixing assets like plant/machinery, land/buildings, and furniture. It also covers intangible assets like goodwill and capital works in progress. Long term investments such as government bonds are included. Current assets like quick assets of tools, debtors, bills receivable and shares are listed, as well as non-quick assets like prepaid rent and livestock. Current liabilities are subtracted from current assets to determine net working capital. Total funds employed is calculated as the sum of net fixed assets, long term investments, and net working capital.

Uploaded by

Taha Merchant
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
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APPLICATION OF FUNDS

A. Fixes Assets:

1.Tangible-

Plant and machinery

Land and building

Furniture

2. Intangible -

Goodwill

3.Capital Work In Progress

NET FIXED ASSETS (1+2+3)

B. Long Term Investments:

Government bonds

C.Net working Capital:


a.Current Assets-

1. Quick

Loose tools

Debtors

Bills receivable

Shares in TIL LTD.

2. Non Quick -

Prepaid rent

Livestock

Net Current Assets (1+2)

b. LESS- Current Liabilities


NET WORKING CAPITAL (a-b)

TOTAL FUNDS EMPLOYED (NET FIXED ASSETS + NET LONG TERM INVESTMENTS + NET WORKING CAPITAL
)

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