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BRILLIANT’S Cash Flow Statement 105

figure represents payment made during the no_|Q> Mmcy df© _| {H$`m J`m h¡ O~{H$ BgH$m cm^ AmJm_r
previous period and benefit received during Ad{Y _| àmßV hmoJmŸ& AmonqZJ {\$Ja nyd© H$s Ad{Y _| {H$E
the current period. This has to be deducted JE ^wJVmZ Ed§ dV©_mZ Ad{Y _| àmßV ~o{Z{\$Q> H$mo Xem©Vm
from expenses on accrual basis to arrive at h¡Ÿ& EŠgn|gog hoVw ^wJVmZ kmV H$aZo Ho$ {bE Bgo EŠgn|gog
payment for expenses. _| go EH«w$Ab ~o{gg na KQ>mZm Mm{hEŸ&
Outstanding expenses represent expenses AmCQ>ñQ>¢qS>J EŠgn|gog go Ame` CZ EŠgn|gog go
incurred but not paid for. To arrive at h¡ {OZH$m ^wJVmZ H$aZm A^r eof h¡Ÿ& BZ EŠgn|gog Ho$ {c`o
payment for expenses, the amount of
dmñVd _| MwH$m`r JB© am{e H$s JUZm hoVw AmCQ>ñQ>¢qS>J
outstanding expenses from the closing balance EŠgn|gog Ho$ ApÝV_ eof H$mo KQ>m`m OmZm Mm{h`o Š`m|{H$ BZH$m
sheet have to be deducted. Similarly, the figure
^wJVmZ hmoZm A^r eof h¡Ÿ& Cgr àH$ma, AmonqZJ ~¡b|g erQ>
in the opening balance sheet must be added
because it would have been paid for during Ho$ Am±H$‹S>m| H$mo Adí` Omo‹S>Zm Mm{hE Š`m|{H$ BgH$m ^wJVmZ
the course of the year. The relationship may df© Ho$ Xm¡amZ {H$`m J`m hmoJmŸ& Bg g§~§Y H$mo {ZåZ{b{IV ê$n
be summarized as follows: go g_amBO {H$`m Om gH$Vm h¡:
Example:
You are given below the profit and loss account of Shrivastava Ltd., for the year ended
December 31, 2019. The company is engaged in the manufacturing of plastic cans.
AmnH$mo 31 {Xg§~a 2019 H$mo g_mßV hþE df© Ho$ {bE lrdmñVd {b{_Q>oS> H$m bm^ VWm hm{Z ImVm ZrMo {X`m J`m
h¡& H§$nZr ßbmpñQ>H$ H¡$Ýg H$m {Z_m©U H$aVr h¡&

Particulars ({ddaU) (`)

Sales ({dH«$¶) 8,00,000
Operating Expenses (excluding depreciation)
(Am°naoqQ>J 춶 (S>o{à{gEeZ H$mo N>mo‹S>H$a)) (5,00,000)

Depreciation (S>o{à{gEeZ) (1,00,000)
Net Profit before tax (Q>¡³g Ho$ nhbo H$m ZoQ> àm°{’$Q>) 2,00,000
Extra-ordinary Income: Gain on speculation
(Aݶ gm‘mݶ Am¶… gQ²>Q>o go Am¶) 50,000
2,50,000
Provision for taxes @ 40% (40% Q>¡³g Ho$ {bE àmo{dOZ) 1,00,000
Net Profit after taxes (Q>¡³g Ho$ ~mX H$m ZoQ> àm°{’$Q>) 1,50,000

Additional Information / A{V[aŠV gyMZm

1. Included in operating expenses is loss on sale of machinery ` 20,000.
_erZar Ho$ {dH«$` na hm{Z ` 20,000 H$mo Am°naoqQ>J EŠgn|gog _| gpå_{bV {H$`m J`m h¡&

2. Actual taxes paid in respect of 2018 ` 90,000.
2018 Ho$ g§~§Y _| ^wJVmZ {H$`m J`m dmñV{dH$ Q>¡Šg ` 90,000 h¡&