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Treatment of loan to employee in cash flow
can anyone tell me the treatment of loan to employee in cash flow statement whether its operating,financing,investing?
Replies (2)
| Originally posted by : sunita rana | ||
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can anyone tell me the treatment of loan to employee in cash flow statement whether its operating,financing,investing? |  |
Operating if your company's business is of giving loan.
Investing if your company's business is not of giving loan.
I think you are talking about salary advances to employees. If so, you need to consider these under change in working capital while calculating cash from operations.
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