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Cash flow statement

Aman Krishna Satrasala (Student) (24 Points)

11 September 2015

One of my client has deposited Rs.100000 towards Electricity dept. deposit. Cash flow statements are applicable as the company's paid up share capital is Rs.60 lakhs. Could anyone please let me know where should the cash outflow towards electricity deposit should be disclosed in the cash flow statement? Which activity does it fall under?

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10 Replies

sudhakar (D) (22 Points)
Replied 11 September 2015

This will be part of operating cash out flow

sameer (charted accountant) (22 Points)
Replied 11 September 2015

Suppose if the company's nature of business is depositing .....then it should be disclosed under operating activity

Nitin sharma (jobs) (114 Points)
Replied 11 September 2015

Kya aisi koi site h jis pr all type k format available ho

moulikumar (article assistant) (21 Points)
Replied 11 September 2015

It should shown under operating activity bcoz that deposit is made to run the business, in case if u didn't deposit the amt electricity dept will not allow to use electricity then u can't run the trading activities.

Jaspal Singh (Practising CA) (321 Points)
Replied 11 September 2015

Explained payments would fall under operating activities..

Sirajudeen (Proprietor) (24 Points)
Replied 11 September 2015

End of the day you can not recover the deposit. So it should be treated as expenses. It's not depsosit. Deposit means to be recovered.

Nitin Gupta (CA Final Student) (66 Points)
Replied 12 September 2015

It is a part of Loans and advances and it should be a part of Operating activities and it shown be shown under WC Changes.

Hitesh (Place) (23 Points)
Replied 12 September 2015

Operating Activity.

sonamtseringsherpa (abc) (33 Points)
Replied 12 September 2015

Operating activities

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 13 September 2015

Yes agree that it should be shown under operating activities. Because though it is not an expentiure, it is still for the purpose of operations of the entity.