Answer 1.

Introduction
Cash flow statement is the financial statement which exhibits the flow of incoming
and outgoing cash during a particular period of time. Cash is king without cash the
business cannot run. Every company includes many expenses and also needs to
make payments for purchase of rawmaterials of his supplies, fixed assets etc on a
regular basis and most of these expenditure or payments are suppose to made in
cash so the company must have enough cash to meet expenditures. If they fails to
make payment on time from this we can assume that there financial position is in
trouble. A cashflow is a statement showing inflow and outflow of cash during a
particular period of time. Cash flow statement each word has its meaning like cash
means it comprises of cash and cash equivalent and flow refers to changes in cash
and cash equivalent which can be positive or negative. Statement is a document
where cash flows are recorded which gives a net result as to an increase or
decrease in cash during that time period.
Concept and Application

Operating
Activities

Cash Flow
Statement

Investing Financing
Activities Activities

Cash Flow of Operating Activities: Operating activities are the principal revenue
producing activities of the enterprise and other activities that are not investing and
financing in simple words here we record the transaction related to the sources and
uses of cash from regular business activities for example buying and selling of
goods, providing services to customers. In this operating activities we record the
transaction related to the income statement.
Cash Flow of Investing Activities: Investing activities are transactions related to the
acquisition and disposal of long-term asset and other investment which are not
included in cash equivalent are to be shown in simple words we can say that the
cash transactions related to the asset side of the balance sheet are to be shown
here. Investing activities indicates expenditure made towards resources to generate
future cash flow.
 Cash Flow of Financing Activities: Financing activities comprises of activities in the
change of the size and composition of the owner capital and borrowings of the
enterprises so these activities are mainly related with the capital and liability side of
the business which means any increase or decrease in the cash flow which are
related to capital and long-term funds would be recorded here.
Particulars Amount Logical Reasoning
The developments in that region will be reflected in
Loss on sale of asset 95780 investing activities. A loss is defined as the difference
between the amount gained at the moment of sale or
disposal and the book value.
It is recorded under cash flow from financing activities on
Dividend income 26000 your cash flow statement this section of the cash flow
statement summarise your company financial operation.
Investment income from interest fall under the category of
investment activities any investment return should be
Interest income 35000 revealed below investing activity due to their connection
to the entity investments and because assets are stated
under investing interest.
Finance cost paid on debentured 12000 Bond issuance charges appear on the income statement
and adjustment to coins asset appear on the balance
sheet.
Gain on sale of investment 45000 The cash flow statement investment activities section
displays proceeds from long term property income.
Depreciation on fixed assets 85000 Depreciation is a non cash item in the cash flow
statement inside the operating activities section and other
expenses which include amortization,
Amortisation expenses is the write off n intangible asset
Amortisation expenses 110000 over its expected period of use which reflects the
consumption of the asset.

Calculation of cashflow
Particulars Amount
Net income 269244
Depreciation on fixed asset 85000
Amortization expenses 110000
NET CASH PROVIDED BY OPERATING ACTIVITIES 464244

Conclusion
A cash flow statement is a financial statement that shows how adjustment deficits
and earnings change an organization current cash and cash equivalents. The cash
flow statement is typically made available to users as part of an organization
operations, investments, and financial planning. The statement specifically details
the cash received and paid out as well as the percentage of coins traded in during
the period covered by the statement.
Answer 2.
Introduction
Trend analysis is a way for analyzing an organizations financial data over time.
Depending on the situation the degree of time can be stated in a variety of ways. A
quantity and percentage exchange will be determined and compared during the
investigation. Any financial expert pays close attention to a company financial
statements There are three large sections that need to be connected what is the
shape of the financial statement these include the company economic characteristics
its industry of operation and its competitive differentiation strategies a successful
financial statement analysis can be broken down into six stages accounting often
known as economic declaration analysis is the act of measuring a company risk and
profitability by examining its financial data. This material protects annual and
quarterly reports including profit statements stability sheets and coins.
Concept and Application
For making trend analysis steps to be followed
Analyze economic characteristics of the industry: Determine the cost chain for the
industry which is the chain of sports involved in the creation of the company goods
and services as well as their manufacture and distribution. At this level strategies
such as porter five forces or examining economic features are commonly used.
Determining the techniques that organizations use: After that consider the firm
product or service as well s its uniqueness profit margin brand loyalty and value
control. It is necessary to pay attention to several elements such as supply chain
integration regional range and firm diversification.
Examining the financial statements of the company to determine the best ones:
Examine the most essential financial data in light of accounting regulations. A great
evaluation requires recognizing evaluating and classifying balance sheet accurately
depicts the company financial situation the most important component of examining
the profit statement is ensuring that it accurately reflects the company overall
financial performance cash flow news can be used to determine the impact of a
company operation investments and economic activities on the company liquidity
role over time.
Analyze the performance and risk of the business today: Financiers can virtually add
value at this point by conducting a detailed analysis of the company and its financial
data financial statement ratios for liquidity asset control profitability debt
management coverage and all are included in analysis equipment.
Forecast the financial status of business: Financial service experts must develop
perfect assumption about a company future and compare how these assumption will
affect each cash flow and investment proforma financial statements are occasionally
generated utilizing procedures such as the share of sales methodology.
What is comparative balance sheet?
A comparative balance sheet is a statement that shows the financial position of an
organization over different periods for which comparison is made or required the
financial position is compared with 2 or more periods to depict the trend direction of
change analyze and take suitable actions while preparing balance sheet items are
written in rows and amount years percentage change wrote in columns.
Here is the comparative balance sheet of amazon
Particulars 2018 2017 Rupee % Change Inc
Change Inc or Dec
or Dec
Equity Share 100000 100000 - 0%
Capital
Reserves & 25000 20000 5000 20%
Surplus
Long Term 30000 35000 (5000) -16.67%
Borrowing
Trade Payable 45000 40000 5000 11.11%
Short Term 10000 9000 1000 10%
Borrowing
TOTAL 210000 204000 6000
Fixed Asset 70000 80000 (10000) (14.2%)
Investment 55000 50000 5000 10%
Trade 35000 25000 10000 29%
Receivables
Inventory 30000 39000 (9000) (30%)
Cash & Bank 20000 10000 10000 50%
TOTAL 210000 204000 6000

Conclusion
A comparative balance sheet is a balance sheet of two or more than two years or
two or more than two companies that assists investors and other stakeholder in
analysing the company performance and trend allowing them to make decision and
forecasting at the same time there are some limitation to this comparative balance
sheet such as uniformity in accounting practices and inflationary factors that must be
considered when analysing the balance sheet
Answer 3a.
Introduction
Account is record of money of the person. Accounting means recording day to day
transaction of business, company, firms etc. Accounts plays an important role to
keep records in organized manner and to save time as well as get accurate report.
Concept and Application
Accounting understanding is very simple if we maintain it properly by giving you one
example you will come to know how accounting should be maintain. When you want
to go outside you want black frock but your wardrobe is not maintained properly you
get irritated while searching that frock like that only when bank is not keeping its
records properly it is difficult to find out balance. So when you make wardrobe in
proper manner for each part different section like t-shirt, frock, jeans etc in same way
as we studied in 11 standard about bookkeeping every bank should maintain daily
transaction properly buy classifying assets, liabilities etc.
Here are some types of Accounts
Personal Account: Personal account relates to person like David’s a/c Philips a/c all
these are natural persons account also in personal account there are artificial or
legal person means in this company has rights to take decision it includes public ltd
private ltd also capital account where owners invest money in business.
Real Account: Real account relates to company’s properties and assets which are
owned by business real account is further classified in two parts.
Tangible Asset: Tangible asset has physical existence which can be see touch for
example land, furniture, machinery.
Intangible Asset: Intangible asset does not have physical existence which cannot be
see touch for example patent, goodwill, trademark all these assets are company
ownership.
Nominal Account: Nominal accounts relates to income or expense and profit or loss
which does not have physical existence.
Particulars Classification of Accounts
Started business with cash Real Account
Purchased goods for cash Nominal Account
Sold goods to c on credit Nominal Account
Paid salary for cash Real Account
Deposited cash into the bank account Real Account

Conclusion
We can conclude that all expense or loss and profit or loss which comes under
nominal account and all liabilities or assets comes under real and personal account.
Answer 3b.
Introduction
Account is maintaining records in books there are classification of account like real
account nominal account personal account.

Concept and Application

In balance sheet debit side is maintain on left side and credit side is maintain on right
hand side. There are golden rules for accounting that are as follows
Real Account: Debit what comes into the business. Credit what goes out into the
business.
Personal Account: Debit the receiver. Credit the giver.
Nominal Account: Debit the expenses or loss of the business. Credit the income or
gain of the business.
Journal Entries
1. Cash A/C Dr 50000
To Capital A/C 50000
2. Purchases A/C Dr 25000
To Cash A/C 25000
3. C A/C Dr 20000
To Sales A/C 20000
4. Salary A/C Dr 15000
To Cash A/C 15000
5. Bank A/C Dr 100000
To Cash A/C 100000
Conclusion
We conclude that accounting is bookkeeping maintaining records in proper manner.
As we seen above golden rules of accounting.