Cash flow

Assume no sales during the year Opening balance of debtors is 20,000 Closing balance is 10,000 How much cash is collected?

CA Suraj Lakhotia

Admin

02-Mar-23 11:44

No cash collected

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

02-Mar-23 11:45

10000 is collected

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

02-Mar-23 11:46

So this is the logic for opening - closing

CA Suraj Lakhotia

Admin

02-Mar-23 11:53

It means we have to know without sale how much cash inflow happens in our business and I right?

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

02-Mar-23 11:56

Net profit includes impact of sales. But there would be cases where you sold but didn’t collect the amount. Need to adjust that

CA Suraj Lakhotia

Admin

02-Mar-23 11:59

But what about the stock and Creditors

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

02-Mar-23 12:09

Can you explain me that point also?

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

02-Mar-23 12:10

Creditors If opening is 10000 Closing is 0 And no purchases during the year Means u paid 10000 during the year( cash. Outflow) Another example Opening 10000 Purchases 50000 Closing 20000 Means actual cash outflow = opening + current year purchases -closing =40000

Harshitha Kalidindi

CA Final

★ 46K+

02-Mar-23 12:24