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CASH FLOW / FUND FLOW - techniques

Prasad (CA Final) (140 Points)

20 August 2008

How to prepare th cash flow and fund flow tatemnts ????

Any techniques are available ?????

Also pls include in your answer the items which generally confuse the successful preparation viz. all tax tratement, diidend items etc.

Please do mention various items which will make tallying of thses statements difficult OR confusing

I want to know the list of itmes and tratements for the same......how i can do it ????where i can get it????

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CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
Replied 20 August 2008

Before getting into induldged one should be clear about the concept. Fund flow is the movement of Current Assets or Current liabilities in a defined period which may result into increase/ decrease in the working capital of an entity or even it may be stable in case where inflows and outflow of funds is equal.

Now as a layman we may concentrate on the issue;

The movement of funds may be from non Current item to Current item or vice-versa.,e.g, Acquisition of A Fixed Asset or its disposal.

Or, the movement may be from Balance Sheet Item to Revenue item appearing in P&L A/c.e.g, Funds from Operations.

So, we should first find out inflows and outflows from Operational Activities.

Thereafter, we may find out the inflows/Outflows from Non Current Assets/Liabilities to Current Assets/Liabilities.

The effect of all these items is the fund flow during the period and the same may be applied on the Opening Working Capital to derive the Closing Working Capital.

Cash Flow Statement may be prepared from the Fund Flow Statement by giving effect of change in Current Assets and Liabilities other than cash in the given period.

1 Like

Deepak (Service) (28 Points)
Replied 20 August 2008

Originally posted by :Prasad
"

I M Deepak Kumar Srivastav

I m Post Graduate in Sociology

i m one year Computer diploma in 1996

i m also known in Tally 7.22

i m last 9 year Computer operator job in Varanasi

How Can my carrer improve in Account Field Please Kindely sugest me.

If any book easy langauage so sugest me.

as soon as Posible

thanking You

Deepak Kumar Srivastav

E-Mail-Deepak_157_ks @ yahoo.co.in

E-Mail deepak157ks @ gmail.com

Yogendra Tyagi (job) (30 Points)
Replied 22 August 2008

There is no shortcut of success.

Yogendra Tyagi

qarni (student) (1220 Points)
Replied 08 September 2008

oho ho

2 Like

(Guest)

what is the difference between fund and cash flow statement ?

(Guest)

Originally posted by :Deepak
"	............ How Can my carrer improve in Account Field Please Kindely sugest me. If any book easy langauage so sugest me. as soon as Posible .............	"

@ Deepak: You posted in a wrong thread (CASH FLOW), anyway here are my suggestions:

Refer NCERT Class XI and XII books on Accounts, they are in easy language and even in Hindi Medium too.

Names: Lekhashastra-I, Lekhashastra-II.

You can even download soft copies of chapters of these books from these sites:

https://ncert.nic.in/textbooks/testing/Index.htm

https://ncert.nic.in/book_publishing/CLASS%2011/Lekhashastra%20Part%20I/contents.pdf

https://ncert.nic.in/book_publishing/CLASS%2011/Lekhashastra%20Part%20I/1.pdf
**********************

You can then also buy guide books for Accountancy.
This Guide Book has both English and Hindi answers:

"SENIOR SECONDARY CERTIFICATE EXAMINATION ACCOUNTANCY"

Publisher:
Satish Brothers,
9666, Islamganj, Library Road, Azad Market, Delhi-6
Available at: CHAWLA BOOKSHOP, R K PURAM, DELHI.
**********************

If you have queries you can post in this forum. Just remember to post in appropriate thread.