Dear Sir,
I Would like to know Whether Decreas in debtors/Stock Source or Application of Funds in funds flow statement.
Ravindra Bagal
CA Ashish Bansal
(Manager Finance & Accounts)
(73 Points)
Replied 06 January 2010
In FFS it will be a sources of funds as debtors is decreasing and we are getting funds
Amir
(Learner)
(4016 Points)
Replied 06 January 2010
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
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 07 January 2010
agreed as it is a source of fund as we get cash and debtors/stock decreases
Ravindra
(Accounts Manager)
(64 Points)
Replied 23 January 2010
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
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 23 January 2010
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.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
