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70 Corporate Finance BRILLIANT’S

working capital (current assets less current AgoQ²>g ‘| go H$a§Q> bm¶{~{b{Q>g KQ>mH$a) EH$ AH$mC§qQ>J
liabilities) increased or decreased during an nr[a¶S> Ho$ Xm¡amZ ~‹T>r h¡ ¶m KQ>r h¡&
accounting period.
In addition, the fund flow statement BgHo$ A{V[a³V, ’§$S> âbmo ñQ>oQ>‘|Q> CZ òmoVm| H$m
describes the sources from which additional dU©Z H$aVm h¡ {OZgo A{V[a³V ’§$S²>g {ZH$mbo J¶o Wo VWm
funds were derived and the uses to which these Cn¶moJ {H$¶o J¶o Wo {OZHo$ {b¶o BZ ’§$S²>g H$mo Amd§{Q>V
funds were allocated.
{H$¶m J¶m Wm&
Fund flow statement indicates the amount ’§$S> âbmo ñQ>oQ>‘|Q> Xmo AH$mC§qQ>J nr[a¶S²>g Ho$ ~rM
of change in various balance sheet items {d{^ÝZ ~¡b|g erQ> AmBQ>åg ‘| n[adV©Z H$s am{e H$m
between two accounting periods. It shows the g§Ho$V H$aVm h¡& ¶h ’§$S²>g Ho$ òmoVm| VWm Cn¶moJ H$mo
sources and uses of funds.
Xem©Vm h¡& 
PREPARATION OF FUND-FLOW STATEMENTS / ’§$S> âbmo ñQ>oQ>‘|Q> V¡¶ma H$aZm

Q.9. How Fund flow statements are prepared? Give formats.
’§$S²>g âbmo ñQ>oQ>‘|Q²>g H¡$go V¡¶ma {H$¶o OmVo h¢? ’$m°‘}Q> ~VmB¶o&
OR
Show the preparation of schedule of changes in working capital and the fund flow
statement.
d{Hª$J H¡${nQ>b VWm ’§$S> âbmo ñQ>oQ>‘|Q> ‘| n[adV©Zm| Ho$ eoS²>¶yb H$s V¡¶mar Xem©B¶o&

Preparation of A Fund Flow State- ’§$S> âbmo ñQ>oQ>‘|Q> V¡¶ma H$aZm
ment

A Fund Flow statement can be prepared EH$ ’§$S> âbmo ñQ>oQ>‘|Q> H$mo H$ånoao{Q>d ~¡b|g erQ>,
from comparative balance sheets, income B§H$‘ ñQ>oQ>‘|Q> VWm A{V[a³V S>mQ>m go V¡¶ma {H$¶m Om
statement and additional data. gH$Vm h¡&
The statement can be prepared in three ¶h ñQ>oQ>‘|Q> VrZ MaUm| ‘| V¡¶ma {H$¶m OmVm h¡ Omo
steps as follows: {ZåZ h¢…

1. Sources and Applications of Funds. 1. ’§$S²>g Ho$ òmoV VWm AZwn«¶moJ&
2. Schedule of Changes in Working Capital. 2. d{Hª$J H¡${nQ>b ‘| n[adV©Zm| H$s AZwgyMr&
3. Funds from Operations. 3. H$m¶m] go ’§$S²>g&
I. Sources and Applications of Funds I. ’§$S²>g Ho$ òmoV VWm AZwà¶moJ

(a) The various sources of funds are: (a) ’§$S²>g Ho$ {d{^ÝZ òomV h¢…

Particulars Cash Working Capital
({ddaU) (H¡$e) (d{Hª$J H¡${nQ>b)
1. Issue of Share Capital (equity share, Preference share) Inflow Increases
eo¶a H¡${nQ>b H$m Bí¶y (B{³dQ>r eo¶a, {à’$a|g eo¶a) BZâbmo ~‹T>Vm h¡