Cash flow
This query is : Resolved
IshaanGarg
(Querist)
23 November 2015
General reserve treatment in cash flow statement
CA. Sunil Gokhale
(Expert)
25 November 2015
General reserve does not appear in cash flow statement as any change in GR does not involve any cash flow. However, if GR has increased during the year then it means some profit from the current year has been transferred to GR. This helps in preparing the P&L Appropriation a/c to determine the amount of net profit which is then used to find the cash flow from operating activities.
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