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FUND FLOW STATEMENT

 

CASH FLOW STATEMENT

 

It Analyses the Balance Sheet into Long Term and Short term Sources and uses It Analyses the Balance Sheet into Sources of Cash and Uses of Cash

How to Check

We calculate Long Term and short term Surplus/deficit

 

If there is long term surplus,it should be equal to short term deficit and vice versa

How to Check

We calculate Surplus/deficit of Cash

If we add Opening Balance of Cash and cash equivalents to it,

it should be equal to Closing balance of cash and cash equivalents

 

 

We take increase in Current Assets

We take increase in Current Assets except cash and cash equivalents

We take Profit after tax

We take Operating profit before tax and interest

it is used while applying for loans

Banks check whether there is any misue of funds (short term money used for long term or vice versa)

It is used while applying for loans as well as attached with MIS/Balance sheet

  1. Accounts and Finance
  2. Step 6 Fund Flow and Cash Flow
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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