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Cash flow statement

Accountancy

Reserves and surplus! Where can we see it's impact in cfs?

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Bumble Bee

Bumble Bee

CA Final

3K+

11-Sep-22 20:41

425

Answers (3)

Reserves and Surplus do not involve any cash inflow nor outflow. Hence, they are not considered in the cash flow statements.


In the Profit and Loss Appropriations, they may be considered like - Some reserves like General reserve may be added back to arrive the actual profit or the Net profit before taxation for the year. But in the given question, that difference of Rs8,000 does not have any impact on the cash flow statements, as there is no cash inflow nor outflow.


Avasarala Vivek Aditya

Avasarala Vivek Aditya

CA Inter

6K+

12-Sep-22 10:03

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