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  • Apr 02 2009
    11:47 AM
    6731
    3

    How to prepare funds flow statement?
    • pankaj.boricha

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    MohitJindal  

    • Member Since May-2009 | May 1st, 2009

    A fund flow statement or a cash flow statement records the changes in monetary funds over a period of time, usually by comparing the latest position at balance sheet date with the corresponding monetary position a year ago.

    There are various elements of business that affect fund/cash flow. These include such things as increased sales, reductions or increases in debtors, longer or shorter times in paying creditors, repayments of loans, etc., a summary of which should be shown on separate lines of the statement. It can start with a section listing the elements that contribute to an increase in cash, then the next section lists those items which have contributed to a decrease in cash.

    Space (and time!) does not permit more comprehensive details of what is needed and how to do it. You should consult a text book on Financial Accounting and look at the fund/cash flow statement of a company similar to the one for which you wish to prepare such a statement.

    At the end of the fund/cash flow statement, if you have done all your calculations correctly, and taken everything that affects cash movement into account, your final figure will equal the cash figure in the balance sheet.

  • Apr 12 2007
    05:28 PM
    54144
    66

    What are the three golden rules of accounts
    • sumedh

    nominal,personal,real

    swetlana bakshi

    • May 18th, 2016

    Rules of debit and credit under traditional approach:

    PERSONAL ACCOUNTS: Debit the receiver (of benefit), and credit the giver (of benefit).

    REAL ACCOUNTS: Debit what comes in, and credit what goes out.

    NOMINAL ACCOUNT: Debit all expenses and losses and credit all incomes and gains

    pradeep kumar

    • Apr 14th, 2016

    1) Personal Account:
    Debit the receiver.
    Credit the giver.

    2) Real Account:
    Debit What comes in.
    Credit What goes out.

    3) Nominal Account:
    Debit all expenses and losses.
    Credit all incomes and gains.