Current assets and fixed assets, current assets and capital,
current assets and fixed liabilities, current liabilities and...


Just like heart pumping blood to other parts of the
body in a human body system, the fund – mean to
include cash and ca...
Fund means cash or cash equivalents or to mean
a working capital
Behind the balance sheet information
 Capital as well as revenue nature

Unbalance in liquid position of the business
 Possibility of dividend distribution despite net loss
 Profit position in ...
To add items which do not result in outflow of
funds
 To deduct items which do not increase funds




Non-operating ite...
Schedule of changes in working capital
 Increase in current asset and decrease in current
liability = increase in working...
Fund flow statement:
 Source of Funds:
 Application of funds:

Provision for taxation and proposed dividends:
 Method 1: (a) as a current liability
 Method 2: (b) as appropriation of ...
Is it a source of fund?
 Closing inventory includes depreciation as an
element of cost
 Saves funds
 Reduced taxable in...
Equity accounts payable – creditors
 Notes payable
 Capital stock
 Retained earnings



To prepare concerned accounts in the light of
opening balance, closing balance, sale and
purchase of fixed assets


Preparation of Statement of Changes in the
Position –

Is obligatory in USA
 Accounting Standard-3 by ICAI
 Now AS 3 ...
Cash flow from operating activities
 Cash flow from investing activities
 Cash flow from financing activities



When financial statements are invariably prepared
by an organisation, what is the need for the
preparation of a Fund Fl...


While the Trading account brings out either gross
profit or gross loss, the Profit & Loss account brings
out either net...
RAJASEKAR G –
 Academic Counsellor, for MBA
 IGNOU Study Chapter,
 Chennai

Contact
suresh@mybskool.com
09962959381
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myBskool Live Virtual Class ppt - Fund flow statement | Online Mini MBA (Free)

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myBskool Live Virtual Class ppt - Fund flow statement

Prof. RAJASEKAR G –
Academic Counsellor, for MBA
IGNOU Study Chapter,
Chennai

For Live Class logon to - http://www.mybskool.com

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myBskool Live Virtual Class ppt - Fund flow statement | Online Mini MBA (Free)

  1. 1. Current assets and fixed assets, current assets and capital, current assets and fixed liabilities, current liabilities and fixed liabilities, current liabilities and capital, current liabilities and fixed assets
  2. 2.  Just like heart pumping blood to other parts of the body in a human body system, the fund – mean to include cash and cash equivalents in an organisation – takes care of the operations of the organisation.
  3. 3. Fund means cash or cash equivalents or to mean a working capital
  4. 4. Behind the balance sheet information  Capital as well as revenue nature 
  5. 5. Unbalance in liquid position of the business  Possibility of dividend distribution despite net loss  Profit position in the organisation 
  6. 6. To add items which do not result in outflow of funds  To deduct items which do not increase funds   Non-operating items treatment in Fund Flow Statement
  7. 7. Schedule of changes in working capital  Increase in current asset and decrease in current liability = increase in working capital  Decrease in current asset and increase in current liability = decrease in working capital 
  8. 8. Fund flow statement:  Source of Funds:  Application of funds: 
  9. 9. Provision for taxation and proposed dividends:  Method 1: (a) as a current liability  Method 2: (b) as appropriation of profit 
  10. 10. Is it a source of fund?  Closing inventory includes depreciation as an element of cost  Saves funds  Reduced taxable income 
  11. 11. Equity accounts payable – creditors  Notes payable  Capital stock  Retained earnings 
  12. 12.  To prepare concerned accounts in the light of opening balance, closing balance, sale and purchase of fixed assets
  13. 13.  Preparation of Statement of Changes in the Position – Is obligatory in USA  Accounting Standard-3 by ICAI  Now AS 3 (Revised) 
  14. 14. Cash flow from operating activities  Cash flow from investing activities  Cash flow from financing activities 
  15. 15.  When financial statements are invariably prepared by an organisation, what is the need for the preparation of a Fund Flow statement?  Is it a statutory obligation or what does the fund flow statement bring out?
  16. 16.  While the Trading account brings out either gross profit or gross loss, the Profit & Loss account brings out either net profit or net loss and the Balance Sheet exhibits the true and fair view of the affairs of the organisation on a particular date, the preparation of Fund Flow Statement brings out the intricacies in an organisational finance sourcing and application.  It is not a contradictory statement but it is a complimentary statement.
  17. 17. RAJASEKAR G –  Academic Counsellor, for MBA  IGNOU Study Chapter,  Chennai 
  18. 18. Contact suresh@mybskool.com 09962959381

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