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To create a Fund Flow Statement based on the provided summarized balance sheet of Parag Ltd., we need to analyze changes in working capital, calculate the sources and applications of funds, and incorporate the additional information given.

### Steps for preparing a **Fund Flow Statement**:

1. **Changes in Working Capital**:
   - Calculate the changes in current assets and current liabilities between the two dates (31st March 2019 and 31st March 2020).

2. **Sources of Funds**:
   - Funds from operations (retained earnings).
   - Increase in Share Capital.
   - Increase in Long-term Bank Loan.

3. **Application of Funds**:
   - Purchase of assets.
   - Payment of dividends.
   - Repayment of loans.

### Extracted Data:

#### Liabilities:
- **Share Capital** increased from ₹4,00,000 to ₹5,00,000 (Source).
- **General Reserve** increased from ₹1,00,000 to ₹1,20,000.
- **Profit & Loss Account** slightly increased from ₹61,000 to ₹61,200.
- **Long-term Bank Loan** increased from ₹1,40,000 to ₹2,70,400 (Source).
- **Loan** repaid, as it disappeared from the 2020 balance sheet (Application).
- **Creditors** increased from ₹60,000 to ₹70,000 (indicating an increase in working capital).

#### Assets:
- **Goodwill**: Newly acquired, valued at ₹10,000 in 2020.
- **Land and Building** depreciated from ₹4,00,000 to ₹3,80,000 (due to depreciation of ₹20,000).
- **Plant and Machinery** depreciated from ₹3,00,000 to ₹3,38,000 (depreciation of ₹28,000).
- **Stock** decreased from ₹2,00,000 to ₹1,48,000 (reduction in working capital).
- **Debtors** decreased from ₹1,60,000 to ₹1,28,400 (reduction in working capital).
- **Cash in Hand** increased from ₹1,000 to ₹17,200.

### Additional Information:
1. **Depreciation**: 
   - Plant and Machinery: ₹28,000.
   - Land and Building: ₹20,000.
   
2. **Provision for Tax**: ₹66,000.
3. **Dividend**: ₹46,000 paid.

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### Would you like to proceed with detailed Fund Flow Statement preparation, including working capital changes, sources and application of funds?

Here are some related questions for further exploration:
1. How do we calculate working capital from a balance sheet?
2. What are the key sources of funds in a Fund Flow Statement?
3. How is depreciation treated in fund flow analysis?
4. What is the impact of an increase in share capital on fund flow?
5. How do provision for taxes and dividends affect the Fund Flow Statement?

**Tip**: Always ensure that depreciation is considered as a non-cash expense while preparing fund flow statements, as it does not directly impact cash or funds.

You are required to prepare a Fund Flow Statement for the year ended 31st March, 2020, using the summarized Balance Sheet of Parag Ltd. as on 31st March, 2019, and 31st March, 2020.

Learn how to prepare a Fund Flow Statement for Parag Ltd. based on the balance sheet data from 31st March, 2019 to 31st March, 2020. This includes calculations for working capital, sources and applications of funds, as well as depreciation, provision for tax, and dividends.

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