JAGANATHAN R ACMA, SAP(Fi-Co) (Manager Accounts and Finance) (915 Points)
16 May 2021Hi,
I have the details of balance sheet from April to June 2020
The question is prepare the cash flow statement as on June 2020?
for preparing the June 2020 statement can i consider the May 2020 figure or April 2020 figure for increase and decrease the asset and liabilities
pl. suggest
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5148 Points)
Replied 16 May 2021
Cash flow is calculated by making certain adjustments to net income by adding or subtracting differences in revenue, expenses, and credit transactions (appearing on the balance sheet and income statement) resulting from transactions that occur from one period to the next. So period ending june is to be taken.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 16 May 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 17 May 2021
If your doing monthly, it should be May because working capital changes is between current period and previous period.
sabyasachi mukherjee
(27574 Points)
Replied 17 May 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 17 May 2021
What ever it is, comparison can be done between only one period, so use may.
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