Funds Flow

In FFS it will be a sources of funds as debtors is decreasing and we are getting funds

 INFOLW OF FUNDS / SOURCES OF FUNDS

DECREASE IN CURRENT ASSETS

INCREASE IN CURRENT LIABILITIES

OUTFLOW OF FUNDS / APPLICATION OF FUNDS

INCREASE IN CURRENT ASSETS

DECREASE IN CURRENT LIABILITIES

It is Sources of funds

yeah!! its a source of funds..

agreed as it is a source of fund as we get cash and debtors/stock  decreases

yeh, it is source of fund

SOURCE OF FUND 

Dear sir,

We are the manufacturing company & service provider company. I would like to know whether can we avail the service tax credit on purchase booking in our book of account. or only after making the payment of the said bii. i.e.if i have a service provided bill in Nov. & I paid the bill in Jan. so whether the bill service tax credit will be available in Nov. or in Jan. pl explain

Ravindra

Source...The logic is simple.....When current asset(In this case) decreases, there must be a corresponding increase in assets or decrease in liabilty. That is when debtors decrease, we should have received cash(Increase in Asset). If debtor is a supplier whose has already dealt with us, his account cr.balance will get decreased(Decrease in Liability).

It means that we have received fund from that transaction, and hence the same is source.