Reconciliation of Cash Flow with Profit & Loss A/c
This query is : Resolved
05 November 2007
Can anybody tell me:??
Can we reconcile Cash Flow with P&L or vise versa.
Because in Cash Flow we consider only actual inflow/outflow of the cash/bank, while in case of P&L, we show our expenses on accrual basis. So how can we reconcile cash flow with P&L??
Can we reconcile Cash Flow with P&L or vise versa.
Because in Cash Flow we consider only actual inflow/outflow of the cash/bank, while in case of P&L, we show our expenses on accrual basis. So how can we reconcile cash flow with P&L??
05 November 2007
What is the purpose? You can find cash profit by doing so and coross check it. This process is done only for the academic interest.
05 November 2007
Dear Kapil:
My senior has asked me o reconcile Cash Flow with P&l, because in Cash low it it showing surplus while in P&L, it is showing -ve profit.
My senior has asked me o reconcile Cash Flow with P&l, because in Cash low it it showing surplus while in P&L, it is showing -ve profit.
05 November 2007
Dear Shilpa,
I am posting the details for your perusal.
I am posting the details for your perusal.
05 November 2007
Dear Shilpa,
You must have computed profit made during the year i.e. increase in P&L account balance and
Add back
Provision for taxation
Proposed Dividend
Transfer to Reserves
You will arrive at Net Profit before taxation taken to cash flow
This will apply cash flow in operating activities in Indirect Method.
The basic proble is that you are having Cash Flow Surplus and P&L negative.
It can be so that Operating Activities is negative and surplus is due to Financing and Investing Activities or interchange of any items.
I took too long to explain but as a Professor I take time.
I hope you will get the answer.
Happy Diwali.
You must have computed profit made during the year i.e. increase in P&L account balance and
Add back
Provision for taxation
Proposed Dividend
Transfer to Reserves
You will arrive at Net Profit before taxation taken to cash flow
This will apply cash flow in operating activities in Indirect Method.
The basic proble is that you are having Cash Flow Surplus and P&L negative.
It can be so that Operating Activities is negative and surplus is due to Financing and Investing Activities or interchange of any items.
I took too long to explain but as a Professor I take time.
I hope you will get the answer.
Happy Diwali.
05 November 2007
Dear Sir:
Thanks for your guidance.
I am trying for the same.
Thanks
Wishing you also a "Happy Dipawali"
Thanks for your guidance.
I am trying for the same.
Thanks
Wishing you also a "Happy Dipawali"
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Sales amount in Gstr1
- Supply through E-commerce Operators
- TDS Claim year
- Relief u/s Section 89
- TDS Challan Code
- Rent lease agreement
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Taxation on LTCG for property sold after 24JUL2024
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
