Page 219 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Cost and Management Accounting

Notes To Proposed Dividend 12,000

To Closing Profi t c/d 1,20,000
1,72,000 1,72,000

Task Discuss any non-current account transactions affecting the fund position of a fi rm
of your choice.

Self Assessment

Choose the appropriate answer

7. Adjusted profit and loss account is prepared for
(a) Determining the fund from operations
(b) Determining the fund lost in operations
(c) Either (a) or (b)
(d) None of the above

8. Fund flow statement is categorized into two parts
(a) Fund inflow and Fund outfl ow

(b) Cash inflow and Cash outfl ow

(c) Sources and Applications
(d) None of the above

9. Fund from operations is
(a) Sources of the fi rm
(b) Applications of the fi rm
(c) Neither sources nor applications
(d) None of the above

12.4 Preparing Fund Flow Statement

The next step is to prepare the fund flow statement. The proforma of the fund fl ow statement:

Sources of Funds Uses of Funds
Funds from Business Operation Funds Lost in Operations
Non-trading Incomes Redemption of Preference Share Capital
Sale of Non-current Assets Repayment of Loans
Sale of Long-term Investments Purchase of Long-term Investments
Issue of Shares Purchase of Fixed Assets
Acceptance of Deposits Payment of Taxes
Long-term Borrowings Payment of Dividends
Decrease in Working Capital Drawings
Loss of Cash
Increase in Working Capital

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