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Old Thursday, November 12, 2009
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Omer Omer is offline
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@ bunko

1) Bank Loan Due on April 10, Rs 9000 plus Rs 4,500 Interest: We Include both in Cash outflow? Yes, both will represent cash payment made in April and hence will be included in outflow.
2) Any Amount due on April, We include it in outflow ? Any amount due and paid in April will be included unless there are other conditions attached. But the question is not such complex and hence you can take this amount to cash outflow.
3) Accrued Taxes for april, payable in june 2007 : We should not include it in for outflow, Right? yes, they are accrued expenses and hence will be included in the cash oulflow in June only, not in April.
4) Accounts Payable march 31, Rs
460,000 : Include in Outflow? Well, here you will have to look at the corresponding Accounts Payable at April 30. If the amount is reduces (e.g. Rs 400,000) then you will include that difference (Rs 60,000) in the cash outflow.
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