One of my client has deposited Rs.100000 towards Electricity dept. deposit. Cash flow statements are applicable as the company's paid up share capital is Rs.60 lakhs. Could anyone please let me know where should the cash outflow towards electricity deposit should be disclosed in the cash flow statement? Which activity does it fall under?
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Cash flow statement
Replies (10)
This will be part of operating cash out flow
Suppose if the company's nature of business is depositing .....then it should be disclosed under operating activity
Kya aisi koi site h jis pr all type k format available ho
It should shown under operating activity bcoz that deposit is made to run the business, in case if u didn't deposit the amt electricity dept will not allow to use electricity then u can't run the trading activities.
Explained payments would fall under operating activities..
End of the day you can not recover the deposit. So it should be treated as expenses. It's not depsosit. Deposit means to be recovered.
It is a part of Loans and advances and it should be a part of Operating activities and it shown be shown under WC Changes.
Operating Activity.
Operating activities
Yes agree that it should be shown under operating activities. Because though it is not an expentiure, it is still for the purpose of operations of the entity.
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