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Showing posts with the label Accountancy class 12

WHAT IS CASH FLOW STATEMENT (CFS)? - CA Inter/Class 12th Accountancy

 Cash Flow Statement (CFS) - Introduction and Detailed Concept The Cash Flow Statement, or the income proclamation, is a budget summary that sums up the measure of money and money counterparts entering and leaving an organization. The  cash flow statement (CFS)  gauges how well an organization deals with its money position, which means how well the organization creates money to pay its obligation commitments and reserve its working costs. The income proclamation supplements the monetary record and salary articulation and is a compulsory piece of an organization’s money related reports since 1987. The  Cash Flow Statement (CFS)  permits financial specialists to see how an organization’s activities are running, where its cash is coming from, and how cash is being spent. The CFS is significant since it assists speculators with deciding if an organization is on strong money related balance. Banks, then again, can utilize the CFS to decide how much money is accessible (alluded to as liquidi

WHAT IS CASH FLOW STATEMENT (CFS)? Accountancy

CASH FLOW STATEMENT (CFS) - Accountancy Class 12   The Cash Flow Statement , or the pay decree, is a spending synopsis that summarizes the proportion of cash and cash partners entering and leaving an association. The income articulation (CFS) checks how well an association manages its cash position, which implies how well the association makes cash to pay its commitment duties and save its working expenses. The pay decree supplements the fiscal record and compensation verbalization and is a mandatory bit of an association's cash related reports since 1987.  The Cash Flow Statement (CFS) licenses budgetary pros to perceive how an association's exercises are running, where its money is coming from, and how money is being spent. The CFS is huge since it helps theorists with choosing if an association is on solid cash related parity. Banks, on the other hand, can use the CFS to choose how much cash is open (insinuated as liquidity) for the association to back its working expense

What is difference between Fixed Capital and Fluctuating Capital Accounts

Difference between Fixed Capital and Fluctuating Capital Accounts Accountancy class 12 Fixed Capital -  Fixed Capital Account means the owners/partners contribute an amount as capital at the time of commencing the business which remains in the business at the same amount. This is often the method followed in established Partnership Firms where the contribution of capital usually stands in proportion to the profit-sharing ratios among the partners. But as the name indicates,  Fixed Capital Account  simply means that the Capital Account is carried from one period to another at the same amount.  Fluctuating Capital Accounts -  Mostly in case of sole trader-ship, the sole owner prefers to maintain a single account in the owner’s name called Fluctuating Capital Account which keeps on fluctuating because of profits, interest on capital, drawings, interest on drawings etc. and any other transactions with the owner are entered in one single account called Capital Account. Since the balance o