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what is the fund flow and cash flow? what's diffenence
between
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Answer / reshma
Fund flow statement will provide us the information about
the different sources of fund and their various uses in
particular time.
The fund flow statement summarising the financial changes
which were occured b/w the begining & the end of a company
accountiong year.
Cash Flow - A messure of a company's financial
health.Equals to cash receipt minus cash payment over a
giver period of time.
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Purchased goods worth @25000 at 10% trade discount from seven who paid 200/- as carriage on behalf of prabhakar
Liabilities: 2006 2007 Assets 2006 2007 Trade Creditiors 100 40 Cash atBank 100 65 Bills Payable 50 60 Account/R 105 120 Outstanding Expenses 25 20 B/R 130 140 Bonds Payable 220 140 Inventory 110 40 Accumulated Depreciation: Machinery 120 160 -on Machinery 30 35 Building 300 310 -On Building 75 85 Land 60 130 Reserves 100 115 Patents 55 60 Retained Earning 130 170 share Capital 250 360 Profit from operation after providing Rs.10,000as depreciation on building and Rs.10,000 on machinery and Rs.5,000 as amortization on patents for the year 'April 06- March07' was Rs.35,000. Other revenues for the year were Rs.40,000. An old machine with original cost of Rs.15,000 was sold at a loss of rs.5,000. Prepare Fund Flow Statment and Cash Flow Statment for the year ending March 31 2007 based on the information given above.
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