FFS WORKING NOTES

FUNDS FLOW STATEMENT 

STATEMENT OF CHANGES IN WORKING CAPITAL



STATEMENT OF FUNDS FROM OPERATIONS



FUNDS FLOW STATEMENT WORKING NOTES:

TO ASCERTAIN FUNDS FLOW STATEMENT:



PROVISION FOR TAX ACCOUNT



PROPOSED DIVIDEND ACCOUNT



FIXED ASSET ACCOUNT



PROVISION FOR DEPRECIATION ACCOUNT



INVESTMENT ACCOUONT

RULES FOR ASCERTAIN CHANGES IN WORKING CAPITAL: (BASE YEAR- CURRENT YEAR = INCREASE OR DECREASE IN SPECIFIC ASSET)

I. INCREASE IN CURRENT ASSET, RESULT IN INCREASE (+) IN “WORKING CAPITAL”. II. DECREASE IN CURRENT ASSET, RESULT IN DECREASE (- ) IN “WORKING CAPITAL”. III. INCREASE IN A CURRENT LIABILITY, RESULT IN DECREASE (- ) IN “WORKING CAPITAL”. CAPITAL”. IV. DECREASE IN A CURRENT LIABILITY, RESULT IN INCREASE (+) IN “WORKING CAPITAL”.

INCREASE IN CURRENT ASSET

-

INCREASES WORKING CAPITAL

DECREASE IN CURRENT ASSET

-

DECREASES WORKING CAPITAL

INCREASE IN CURRENT LIABILITY

- DECREASES WORKING CAPITAL

DECREASE IN CURRENT LIABILITY

- INCREASES WORKING CAPITAL

BASIC FORMAT FOR ADJUSTMENT FIXED ASSET ACCOUNT PARTICULARS

AMT

TO BALANCE B/D

XXX

TO BANK (PURCHASE) TO SHRE CAPITAL (PURCHASE)

PARTICULARS

AMT

BY DEPRECIATION (PROVISION MADE CURRNENT YEAR)

XXX

XXX

BY ACCUMULATED DEPRECIATION (ON ASSET SOLD)

XXX

XXX

BY P&L ( LOSS ON SALE)

XXX

TO P&L (PROFIT ON SALE)

XXX

BY BANK (SALE)

XXX

TO GENERAL RESERVE ( TRANSFER OF PROFIT)

XXX

BY BALANCE C/D

XXX

XXX

XXX

INVESTMENT ACCOUNT

PARTICULARS

AMT

TO BALANCE B/D

XXX

TO P&L (PROFIT ON SLAE) TO GENERAL RESERVE ( TRANSFER OF PROFITS) TO BANK (PURCHASE)

PARTICULARS

AMT

BY BANK (SALE)

XXX

XXX

BY P&L (LOSS ON SALE)

XXX

XXX

BY DIVIDEND

XXX

XXX

BY BALANCE C/D

XXX

XXX

XXX

PROPOSED DIVIDEND ACCOUNT PARTICULARS

AMT

PARTICULARS

AMT

TO BANK (DIVIDEND PAID BALANCING FIGURE)

XXX

BY BALANCE B/D

XXX

TO BALANCE C/D

XXX

BY P&L A/C (PROPOSED IN CURRENT YEAR)

XXX

XXX

XXX

GENERAL RESERVE ACCOUNT

PARTICULARS

AMT

PARTICULARS

AMT

TO BALANCE C/D

XXX

BY BALANCE B/D

XXX

TO MACHINERY ACCOUNT (LOSS ON SALE)

XXX

BY INVESTMENT ACCOUNT (PROFIT TRANSFERRED)

XXX

BY P&L ACCOUNT (TRANSFER OF PROFIT)

XXX

BY MACHINERY ACCOUNT ( PROFIT ON SALE)

XXX

XXX

XXX

DEPRECIATION & ACCUMULATED DEPRECIATION ACCOUNT

PARTICULARS

TO BUILDING , MACHINERY, FURNITURE (ALL FIXED ASSET IF

AMT

XXX

GIVEN) (DEPRECIATION ON ASSET SOLD)

TO BALANCE C/D

PARTICULARS

AMT

BY BALANCE B/D

XXX

BY DEPRECIATION (OR) P&L ACCOUNT (BALANCING FIGURE)

XXX

(CURRENT YEAR DEPRECIATION)

XXX XXX

XXX

PROVISION FOR TAX ACCOUNT PARTICULARS

AMT

PARTICULARS

AMT

TO BANK (TAX PAID)

XXX

BY BALANCE B/D

XXX

TO BALANCE C/D

XXX

BY P& L A/C ( PROVISION MADE BALANCING FIGURE)

XXX

XXX

XXX