Cash flow statements

In the given question, interest expenses of the year is given which is the right figure that has been added back( reduced early) to net profit; whereas interest expenses for the year is given which includes outstanding expenses of previous year paid this year (as 10,520 is more than 10,000)- 'which is not included in Profit and loss account so as to adjusted with net profit'

Rinuja TK

CA Inter

★ 10K+

26-Jul-22 12:51

Interest paid during the year is shown in financing activities .

Mounika Satya sai Mullapudi

CA Inter

★ 3K+

26-Jul-22 12:34

In order to find operating profit before working capital changes, net profit is reduced with non cash, and non operating, incomes and added with non cash, and non operating, expenses- WHICH WERE ALREADY ADJUSTED WITH NET PROFIT.

Rinuja TK

CA Inter

★ 10K+

26-Jul-22 12:42

Current year expenses= Expenses paid - opening outstanding + closing outstanding+ opening prepaid - closing prepaid ( based on accrual concept)

Rinuja TK

CA Inter

★ 10K+

26-Jul-22 12:53

Thank you sister

Thread Starter

SAKTHI VIGNESH

CA Inter

★ 4K+

26-Jul-22 13:15