Cash flow statement

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
<BR><BR>Help<BR><BR>I am struggling with Cashflow Statement.<BR><BR>HP - Do I only enter payments made less interest proportion which then goes to Interest Paid?<BR><BR>Capital - If we purchase a vehicle on Hire Purchase for say £35,000, the vehicle cost £55,000 - £10,000 part exchange for another company vehicle and £10,000 paid cash by owner of business, how should this appear in cashflow statements.<BR><BR>Inter- company transactions - Are they classed as short term loans.<BR><BR>

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  • System
    System Posts: 100,537 🤖 Admin 🤖
    Cash flow statement

    Hi Helen<BR><BR>Yes, keep the interest and capital repayments separate for hire purchase items. The £10,000 cash paid is for the purchase of non-current assets so would be in the capital/investing section. You'll have to forgive me I'm doing ACCA Financial Reprting so I am more familiar with the international terms and layout.<BR><BR>Intercompany items are cancelled out with each other if you are doing a consolidated CFS but otherwise it would be a part of the payables or receivables figure.<BR><BR>hope that helps.<BR><BR>Alexander

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