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Manage your funds effectively with the Fund Flow Statement format Excel & PDF. Download Vyapar for free & streamline your financial tracking.
Fund means Working capital – difference between current assets and current liabilities. Funds flow statement analyses the reasons for change in financial position between two balance sheets. Funds flow statement shows the inflows and outflows of funds – Sources and Application of funds during a particular period.
Prepared By: Vinay Kumar Shaw. Fund Flow Statement. Fund flow statement is a statement which shows the sources from which funds are obtained and uses to which fund are put. By fund are generally mean working capital.
Funds Flow Statement is a statement prepared to determine the sources and uses of working capital between 2 balance sheet dates. Working Capital = Current Assets – Current Liabilities
Differentiate the funds flow statement from income statement and balance sheet; Prepare funds flow statement; Explain the meaning of certain key terms
Funds flow statement is a method by which we study changes in the financial position of a business enterprise between beginning and ending financial statement dates. It is a statement showing sources and uses of funds for a period of time. Examples of Current Assets are: Cash in hand. Cash at bank. Bills receivables. Stock. Debtors.
A fund flow statement deals with the financial resources required for running the business activities. It explains how were the funds obtained and how were they used. A fund flow statement matches the funds raised and funds applied during a particular period.
