Ex. 7.has been debited to Profitand Loss Account(iv) During 2011, dividends paid 3,000,You are required to prepare a Statement of Source and Application of Funds.source and application 23,000 and 16,000 respectivelyl.From the balance sheet of XYZ Ltd, make out a statement of sources and application offunds and schedule of changes in working capital.31-3-2011 31-3-2010 Liabilities31-3-2011 31-3-2010₹50,000 40,000 Creditors1,80,000 1,25,00030,000 15,000 5% Debentures1,00,000 2,00,0001,00,000 80,000 Equity2,00,000 1,00,0001,20,000 50,000 Profit and Loss A/c 20,0002,00,000 2,00,00040,0005,00,000 4,25,0005,00,000 4,25,000AssetsCashDebtorsStocksInvestments (short-term)Fixed AssetsProfit and Loss A/CProvision for depreciation on the last day of 2010 was 50,000. The same on the last dayof 2011 was 60,000. During the year 2011 a machine costing 30,000 (depreciation10,000) was sold for 16,000.(Ans. Net increase in W.C. 60,000 ; Funds from Operations 84,000 ; Total sources*2,00,000; Total applications 1,40,000).Given here are the comparative Balance Sheets of a company as on March 31, 2010 and2011.8.​