Preparation of Schedule/Statement of changes in working capital

Schedule/Statement of changes in working capital

The information relating to the changes in current natured accounts between two periods of time presented in the form of a statement is what we call the schedule/statement of changes in working capital.

Preparing the Schedule/Statement of changes in working capital

Preparing the schedule/statement of changes in working capital requires us to present the information relating to the current area of the balance sheets pertaining to the two periods in the format given below and deriving and presenting the changes within them.
Schedule/Statement of Changes in Working Capital for the period from __ to __
Particulars/AccountBalance as on 31st MarchWorking Capital Change
20072008IncreaseDecrease
a) CURRENT ASSETS
1) Cash Balance
2) Bills Receivable
3) Sundry Debtors
4) Stocks/Inventories
5) Prepaid Expenses

56,000
5,75,000
9,15,000
9,48,000
3,24,000

78,000
8,25,000
12,25,000
12,00,000
2,84,000

22,000
2,50,000
3,10,000
2,52,000





40,000
TOTAL 28,18,000 36,12,000 8,34,000 40,000
b) CURRENT LIABILITIES
1) Sundry Creditors
2) Bills Payable
3) Bank Overdraft
4) Outstanding Expenses
5) Provision for Taxation
6) Provision for Dividends
7) Reserve for Bad Debts

7,40,000
2,20,000
2,81,000
1,23,000
2,38,000
1,98,000
18,000

11,00,000
4,00,000
2,50,000
1,00,000
3,00,000
2,50,000
12,000



31,000
23,000


6,000

3,60,000
1,80,000


62,000
52,000
TOTAL 18,18,000 24,12,000 60,000 6,72,000
Working Capital [(a) - (b)] 10,00,000 12,00,000
TOTAL 8,94,000 6,94,000
Net Change in Working Capital 2,00,000
  • Identify all the Current natured accounts on the assets as well as the liabilities sides of the two balance sheets in consideration.
  • Fill the statement with the data relating to those accounts, taking current assets as a group and current liabilities as another group.

    A balance sheet item may have data in only one of the balance sheets or in both. Each item should appear only once in the statement.

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