ON
FUND FLOW STATEMENT
Meaning of Fund Flow.
ØFund flow statement consist with two word fund and flow.
Procedure of Preparation of Fund Flow
Statement
Ø The changes which occurs in the current accounts are reflected
in a statement known as ‘schedule of changes in working
capital’ .
Cash in hand
Debtors
Total (A)
(B) Current Liabilities
Bank overdraft
Creditors
Bills payable
Total (B)
Net Working Capital (A-B)
Increase / Decrease in
Statement of Sources & Uses of Funds.
ØThis statement reveals resources from which funds
were obtain by the firm and the specific uses to
which such funds were applied.
1.Sources of fund.
3.Application of fund
Fund Flow Statement
Sources of Fund Amount Uses Of Funds Amount
Fund from operation Loss from operation
Issue of share Redemption of
Issue of debenture preference shares
long term loans Redemption of
Sale of fixed assets / debentures
Investment Purchase of fixed assets
Decrease in working / Investments
capital Payment of dividend & taxes
(if any) Increase in working capital
(if any)
Schedule of Funds from Operations
Particular Amount Particular Amount
Depreciation Profit or gain on sale of
Loss on sale of fixed assets fixed asset
Under writing commissions Dividend received
Discount on issue of shares & Interest received of
debentures investment
Preliminary expense written off Profit on revaluation
Goodwill written off of asset.
Fund from operation.