Preparation of Funds Flow Statement
The funds flow statement is prepared to reflect the changes in the financial position of an organization during a particular period. As such, Balance sheets of the organization at the beginning and end of the particular period are the basic documents that are needed for preparation of funds flow statement.
Please find below funds flow statement for your reference.
Mr. XYZ Ltd.
Statement of Sources and Application of Funds for the year ended ……………
| Sources
Issue of share capital Issue of Debentures Long term Loans Raised Sale of L.T.Investments Sale of Fixed Assets Receipts from Partly paid shares called up Funds from operations Non trading income Decrease in Working Capital |
Rs.
xxx xxx xxx xxx xxx xxx xxx xxx xxx |
Applications
Redemption of redeemable Pref. shares Redemption of Debentures Repayment of Long Term Loans Purchase of Fixed assets Purchase of L.T. Investments Fund Lost in operation Non Trading Operations Non Trading Exp. Payment of dividend Increase in Working Capital |
Rs.
xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx |
| xxx | xxx |
The fund flow statement can also be presented in a vertical form. In such a case, all sources are listed down, totaled and then all Applications are listed at one place and totaled. The totals should be the Increase and decrease in Working capital.
