Non-Cash Transactions

Some investing and financing activities do not have any direct impact on cash flows. For example, conversion of debt to equity, acquisition of an enterprise by means of issuance of share, etc.

Those transactions should be excluded from cash flow statements, in which there are no use of cash or cash equivalents. There are other financial statements in which those investing and financing activities appear separately.

Format: (Direct Method)                                             

M/s ABC LIMITEDCash flow Statement for the year ended 31 March 2014
Cash Flows from Operating Activities (Schedule- 1)XX
Cash Flows from Investing Activities (Schedule- 2)XX
Cash Flows from Financing Activities (Schedule-3)XX
Extraordinary ItemsXX
Net Profit before TaxXX
Income Tax PaidXX
Net Increase or Decrease in cash or cash EquivalentsXX
Add: Cash & Cash Equivalents at the beginning of the periodXX
Cash and Cash Equivalents at the end of the periodXXX

Schedule – 1

Cash flow from operating activities

Particulars Amount
Cash received from customers XXX
Cash paid for:  
– Suppliers for PurchasesXX 
– Wages & SalaryXX 
– Operating and General administrative expensesXXXX
Net Profit before Taxes → XX
Income Tax Paid → XX
Cash flow from Operating Activities → XXX


Cash flow from investing activities

Particulars Amount
Cash received for:  
– Sale of Fixed AssetsXX 
– Sale of InvestmentXX 
– Interest receivedXX 
– Dividend receivedXXXXX
Cash paid for:  
– Purchase of Fixed AssetsXX 
– Purchase of InvestmentsXXXX
Net Cash Flow from Investing Activities → XX


Cash flow from financing activity

Particulars Amount
Cash received for:XX 
Issue of Equity SharesXX 
Issue of Preference ShareXX 
Long term borrowingsXX 
Cash paid for:  
– Interest paidXX 
– Redemption of preference sharesXX 
– Repayment of LoansXX 
Dividend paidXX 
Purchase of InvestmentsXXXX
Net Cash Flow from Financing Activities → XX

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