Fund Flow Statement - vTomb

Fund Flow Statement

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Fund flow statement:- A funds flow statement is a consolidated statement of all the cross transactions over the period for which the flow is being analysed.
Cross Transactions i.e. transactions involving a current account and a non-current account bring about a change in the fund or working capital. Some bring about an increase in fund and others bring about a decrease in the available fund (working capital).
The cross transactions presented in the funds flow statement are classified/grouped into two as,
i. Sources/Inflows of funds
Transactions which bring about an increase in the available fund (working capital)
ii. Applications/Outflows of funds
Transactions which bring about a decrease in the available fund (working capital)

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