Format of Cash Flow Statement (Indirect Method)

CASH FLOW STATEMENT for the year ended ….. Particulars  Amount (A)Cash From Operating Activities Net profit as per Profit and Loss account Add: Transfer to Reserves Interim dividend paid during the year Proposed dividend for the current year Provision for tax made during the year Extra ordinary items debited to profit and loss account (if any) Less: Tax refund Extraordinary items credited to profit and loss account (if any)   =Net Cash Before Tax and Extraordinary Items   Adjustment for non cash and non operating items: Add: Depreciation Goodwill, patents, trademarks etc…

Capital accounts of partners

CAPITAL ACCOUNTS OF THE PARTNERS Capital accounts of the partners can be maintained in two ways; 1) Fixed Capital Accounts 2) Fluctuating Capital Accounts 1) Fixed Capital Accounts Under this method the capital invested by the partners remains constant unless additional capital is brought in or some part of the existing capital is withdrawn permanently by agreement. Entry is made in the Capiatl accounts only to record the capital inroduced or withdrawn permenently by the partners . All the other transactions relating to drawings, interest on capital or drawings, salary…

Profit and loss appropriation account

  Transaction of the partnership firm are recorded according to the Double Entry System of accounting. For recording the transactions the procedure followed is similar to that of the Sole Proprietorship. Starting from Journal, Cash Book and other Subsidiary books viz. Purchases book, Sales book etc. Ledger and trial balance are prepared and at the end of the accounting period Profit and Loss account and Balance sheet are prepared to know about the Profitability and the financial position of the firm. Till here there is no difference between the accounts…