Outrageous In Fund Flow Statement Issue Of Shares Is
It is a valuable aid to the financial manager and also to a creditor for assessing the uses of funds and also helps to determine how the funds are financed.
In fund flow statement issue of shares is. Stood at Rs 2000000 in 2013 and at Rs 26 lac in 2014. It helps the company see through where their money has been spent and from where they have received the money long-term funds raised by issues of shares debentures and sale of non-current assets. In this statement all current assets and current liabilities are individually listed.
Even the calls received from partly paid shares constitute an inflow of funds. D application of cash. This statement follows the statement of sources and application of funds.
A Projected funds flow statement on the basis of it cannot be prepared with much accuracy. All accounts that are part of current assets and current liabilities in a specified format. It is a cash outflow.
C source of cash. As per records the company bought asset of another company for Rs 6 lac payable in fully paid shares. The schedulestatement of changes in working capital is an abstract of the information relating to all the current natured accounts ie.
Fictitious assets written off include Preliminary expenses Discount on issue of shares debentures underwriting commission other assets written. It portrays the inflow and outflow of funds ie. These assets included Goodwill Rs 200000 Machinery Rs 1 83 600 and Stock Rs 216400.
LIMITATIONS OF FUNDS FLOW STATEMENT. Issue of Share Capital. In funds flow statement issue of shares is.