22 February 2008
CASH FLow of an organisation is a statement showing actual
Receipts of money either as cash are bank credits by the organization as well as
Payments of money by way of cash or bank debits by the organization
and the net result either as a cah balance or as an overdraft in bank.
THE FUNDS Flow of an organisation is a Statement showing how the various sources of Funds and application of funds have under gone a change during the period covered by the statement.
Example of sources of funds are: Stock of saleable goods (on sale) Saleaable properties)on sale) Lenders (loan borrowed) Capital (contribution from owners) Receivable (on receipt) Getting goods and services on credit
Example of Application of funds are: Acquisition of Stock Acquisition of properties Repayment to lenders Offer of sale on credit
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