The following are the data of Shri Vigneshwar and Company Ltd. for the two years ended on 31-3-2017 and 31-3-2018: Shri Vigneshwar and Company Ltd. Balance Sheet for the year ended on 31st March Assets : 2018 (₹ 000's) 2

Shri Vigneshwar and Company Ltd. Statement of Sources and Uses of Working Capital for the year ended on 31st March, 2018 Sources Amount (₹ 000's) Working Capital from operations {WN (i)} 65,200 Sale of long-term investment 20,800 Sale of machinery 6,000 Secured loans 1,00,000 Share Capital 60,000 Share Premium 24,000 Total Sources 2,76,000 Uses Purchase of Machinery 70,000 Purchase of Building 1,60,000 Payment of Dividend 12,000 Total Uses 2,42,000 Increase in working Capital 34,000 Working Notes (all the figures given in working notes are amount in thousand) Working Capital from operations is found as follows: Particulars Amount (₹ 000's) Amount (₹ 000's) Net Profit 16,000 Add: Depreciation on Machinery 20,000 Buildings 32,000 Loss on sale of machinery 2,000 70,000 Less: Gain on sale of long-term investment 4,800 Working Capital from operations 65,200 The comparative Balance Sheet indicates that long-term investments have decreased by ₹ 16,000, which is due to the sale of investments. On sale, a gain of ₹ 4,800 is made. This means that the long-term investment must have been sold for cash of ₹ 20,800 (₹ 16,000 + ₹ 4,800). The proceeds from the sale of machine, ₹ 6,000, have been reported as source of working capital. Secured loan increased by ₹ 1,00,000; thus providing working capital. Share Capital together with share premium has contributed a working capital of ₹ 84,000 (₹ 60,000 + ₹ 24,000). During the year working capital was utilized to acquire machinery of ₹ 70,000. The opening balance of machinery account is ₹ 1,40,000. After the sale of machinery costing ₹ 10,000, this balance at the close of the year should have been ₹ 1,30,000. But the closing balance is ₹ 2,00,000, which implies that machinery worth ₹ 70,000 was acquired and funds were used. The cost of machinery sold has been worked out: The accumulated depreciation has increased by ₹ 50,000 (₹ 1,10,000 - ₹ 60,000). If we subtract depreciation on buildings, ₹ 32,000, we are left with the closing balance of accumulated depreciation of ₹ 18,000 for machinery. During the year depreciation provided on machinery is ₹ 20,000. This means that the accumulated depreciation on machinery sold was ₹ 2,000 (₹ 20,000 - ₹ 18,000) which must have been written off at the time of the sale of machinery. The cost of machinery sold is: Sale proceeds, ₹ 6,000 plus accumulated depreciation, ₹ 2,000, plus loss, ₹ 2,000, i.e., ₹ 10,000. The increase in building by ₹ 1,60,000 is a purchase, using working capital funds. The net profits are ₹ 16,000, but the reserve has increased by ₹ 4,000 only. This means that the difference, ₹ 12,000 (₹ 16,000 - ₹ 4,000) must have been paid as cash dividends to the shareholder.