How to Prepare a Cash Flow Statement: With Methods, Examples and Entries! Cash flow statement is prepared on the same lines as the funds flow statement, but strictly restricted to sources and uses of cash. Preparation of the statement is based on the opening and closing balance sheets, profit and loss account and other relevant information. Cash flow statement starts [...]
Here is a compilation of top three problems on cash flow statement with its relevant solution. Problem 1: Given below are Balance Sheets of Calcutta Jute Ltd. as at 31 -3-02 and 31-3-01. You are required to prepare Cash Flow Statement for the year 2001-02. Other Information: (1) Fixed assets costing Rs.1, 20,000, accumulated depreciation Rs.60, 000 were sold for [...]
In this article we will discuss about:- 1. Introduction to Cash Flow Statement 2. Meaning of Cash Flow Statement 3. Definition 4. Objectives 5. Scope 6. Benefits. Introduction to Cash Flow Statement: In June 1981, the Institute of Chartered Accountants of India issued Accounting Standard 3: Changes in Financial position. This accounting standard dealt with the financial statement that summarised, [...]