ACCONTING FOR

MANAGER

CASH FLOW STATEMENT

By
ARUN GULERIA
Roll No. R337B36
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 CASH FLOW
STATEMENT
1. Direct Method
2. Indirect
Method
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 DIRECT METHOD
Cash Flow Statement
(for the year ended 31 March 2008)
Rs. 
Cash Flows from Operating Activities:
------
Cash receipts from customer
Cash paid to suppliers and employees ------
Cash generated from operations ------
Income tax paid ------
Net cash used in operating activities
------
Cash Flow from Investing Activities:
Purchase of new building ------
Sale of Plant ------
------
Cash Flow from Financing Activities:
Issue of Share Capital ------
Dividend Paid ------
Net cash provided by financing activities
--------
Net Decrease/increase in cash and cash
--------
equivalents
Cash and cash equivalent© ARUN
at theGULERIAbeginning
| of
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the period
 INDIRECT METHOD
Cash Flow Statement Amount
(for the year ended 31 March 2008)

Calculation of Cash Flow from Operating

Activities:
Net Profit Before Tax And Extraordinary Items -----------------

Add: Non-cash and non-operating items which have already

been debited to P/L A/C:
a) Depreciation -----------------

b)Transfer to Reserves and Provisions ----------------

c)Goodwill written off -----------------

d)Preliminary expenses written off ------------------

e)Other intangible assets written off such as discount or loss on ------------------

issue of shares/debentures, underwriting commission etc. ___________

f)Loss on sale or disposal of fixed assets ___________

g)Loss on sale of investments ___________
h)Foreign exchange loss ------------------

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 INDIRECT METHOD(CONT.)
Less: Non-cash and non-operating items which
have already been credited to P/L A/c;
a)Gain on sale of fixed assets
b)Profit on sale of invest
c)Income from interest or dividends on
investments
d)Appreciation
e)Reserves written back
f)Foreign exchange gain
Operating Profit Before Working Capital -------------------

Changes ------------------

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 INDIRECT METHOD(CONT.)
Adjustments for changes in Current Operating Assets and Liabilities:
Add: Decrease in Accounts of Current Operating Assets(except cash and cash
equivalents) such as:
Decrease in Trade Debtors
Decrease in Bills Receivables
Decrease in Inventories/Stock-in-trade
Decrease in Prepaid Expenses etc.
Add: Increase in Accounts of Current Operating Liabilities(except Bank
Overdraft) such as
Increase in Creditors
Increase in Bills Payable
Increase in Outstanding Expenses
Less: Increase in Accounts of Current Operating Assets
Less: Decrease in Accounts of Current Operating Liabilities
Cash generated from(used in) operations before tax --------------------

Less: Income tax paid -----------

Cash flow before extra-ordinary items --------------------

Add/Less: Extraordinary items if any

Net Cash Flow From(Used In) Operating Activities
----------------------
-
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 Rs. Rs.

Cash Flow From  

--------
 
Investing (-----------)  
Activities:  
  ---------
Sale Of Machinery    
Purchase of Land
Net cash from investing activities
Cash Flows From
Financing --------
Activities: (--------)
Issue of Share Capital (--------)
Redemption of debentures (-------)
Dividend Paid --------
Payment of interest
Net cash from financing activities --------
Net Decrease/Increases in cash --------
and cash equivalents --------
Cash and cash equivalents
© ARUN GULERIA at the
beginning of the period
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 ADJ. Profit & Loss A/C
To Dividend _______
By Balance b/d ----------

To Depreciation By Operating
On Building ------------- Profit ----------

To Provision for
Tax --------------
To General Reserve
Transfer --------------
To Balance c/d ---------------

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 MACHINARY ACCOUNT
Rs. Rs

Balance b/d ------ Cash(Sale) --------

(-) - Provision for --------
------ Depreciation --------
- Profit and Loss --------
____ Account -----
---- (Loss on sale) ______
____ Balance c/d(--) --------
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--
 PROVISION FOR
DEPRECIATION A/C
Rs. Rs.

-------
Machinery Balance b/d -------

Profit and Loss

Balance c/d Account
(Balancing Figure) ------
_____ _____
_____ _____

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 Tax Payable A/c Rs. Rs.

To Cash-tax -----By Balance

b/d -----
paid(balancing
figure)
By P&L
To Balance c/d ----A/C ---
___ ___
___

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Thank
You
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