Treatment of debtors
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 October 2012
My query is that what would be the treatment of debtors in a cash flow, if the debtors are settled by other than cash consideration.
In my case they are settled by issue of equity shares of the company.
Its effect would be
1st effect- operating activity - add the figure as there is decrease in trade receivable/debtors.
2nd effect- it can't come under financing activity as there is no issue of shares for cash.
Kindly help me to get out with the query.??
Thanks in anticipation
In my case they are settled by issue of equity shares of the company.
Its effect would be
1st effect- operating activity - add the figure as there is decrease in trade receivable/debtors.
2nd effect- it can't come under financing activity as there is no issue of shares for cash.
Kindly help me to get out with the query.??
Thanks in anticipation
Amol S Joglekar
(Expert)
28 October 2012
Both will form the part of FUNDS flow.... debtors by way of "working capital" and "Investment" will get increased. Cash element is absent so no question of cash outgo or inflow.
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
Unanswered Queries
- Reward for festival
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Import of Capital Machine
- Capital gain on commercial property and investment in residential property
- TDS Return Statement Status
- Rent agreement of House of deceased person
- ARCA LOGIN
- Closer of business and itc of capital goods
- Rectification under processing even after 6 months cpc portal
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
