Unit 5: Fund Flow Statement
The fund from operations calculation
The second method of determining the fund from operations under the first classification is the
Accounting Statement Format
2nd method
Adjusted Profit & Loss A/c
Dr Cr
Particulars Amount Particulars Amount
To Depreciation xxxx By Opening Balance Profit xxxx
To Goodwill Written off xxxx By Profit on Sale of Fixed Assets xxxx
To Patent Written off xxxx By Profit on Sale of Investments xxxx
To Loss on Sale of Fixed Asset xxxx By Profit on Redemption of xxxx
Liability
To Loss on Sale of Investment xxxx By Transfer from General xxxx
Reserve
To Loss on Redemption of Liability By Balancing Figure fund from xxxx
Operation(FFO)
xxxx
To Preliminary Expenses off xxxx
To Proposed Dividend xxxx
To Transfer to General Reserve xxxx
To Current Year Provision for xxxx
Taxation
To Current Year Provision for xxxx
Depreciation
To Balancing Figure (Fund Lost in xxxx
Operations)
The fund from operations calculation
The second method of determining the fund from operations under the first classification is the
Accounting Statement Format
2nd method
Adjusted Profit & Loss A/c
Dr Cr
Particulars Amount Particulars Amount
To Depreciation xxxx By Opening Balance Profit xxxx
To Goodwill Written off xxxx By Profit on Sale of Fixed Assets xxxx
To Patent Written off xxxx By Profit on Sale of Investments xxxx
To Loss on Sale of Fixed Asset xxxx By Profit on Redemption of xxxx
Liability
To Loss on Sale of Investment xxxx By Transfer from General xxxx
Reserve
To Loss on Redemption of Liability By Balancing Figure fund from xxxx
Operation(FFO)
xxxx
To Preliminary Expenses off xxxx
To Proposed Dividend xxxx
To Transfer to General Reserve xxxx
To Current Year Provision for xxxx
Taxation
To Current Year Provision for xxxx
Depreciation
To Balancing Figure (Fund Lost in xxxx
Operations)
