Cash flow statement

dear aksh*t,

in indirect method of cash flow statement you can take such differnce to be PAT for the current year subject to adjustments

cheers

ganesh agarwala

BUT WHEN IT IS INCREASED WE ADD IT TO CALCULATE NET PROFIT BEFORE W.C CHANGES.

 I THINK WE NEED TO DO THE SAME EXCEPT IT WILL BE REPRESENTED BY BRACKET

AM I RIGHT ?

Can it be transferred to profit and loss a/c?

Can I get complete question?

Yesterday only I got the same kind of question from the reference books of accounts. I got the answer correct by transferring general reserve to profit & loss a/c.

It seems that it may work. But I do not have any fundamental for that. I am not sure whether we can transfer general serve to p&l a/c.