CASHFLOW STATEMENT HELP

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:10AM in AAT student discussion
Hi,<BR><BR>Can anybody please tell me where to put prepayment in a cashflow statement?<BR>It might be really obvious please I'm stuck!<BR><BR>Thanks<BR><BR>Debs

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    CASHFLOW STATEMENT HELP

    Prepayments are a form of Debtors (the money is owed to you until it has been used)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    CASHFLOW STATEMENT HELP

    Prepayments have already been paid so do not need to go through a cash flow. The money would have gone through when it was actually paid.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    CASHFLOW STATEMENT HELP

    I agree that prepayments are money already paid but I was assuming that Debs is referring to Cash Flow Statements in connection to P & L statements in which case the difference between 'debtors' at the current month end and at previous month end needs to be used.<BR><BR>Gill
  • System
    System Posts: 100,534 🤖 Admin 🤖
    CASHFLOW STATEMENT HELP

    tell me, did you understand what they meant, or has your question been answered??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    CASHFLOW STATEMENT HELP

    Agreed with bluewednesday...<BR><BR>Prepayments won't go into a cash flow statement as a seperate entry... it is already accounted for as "Debtors". Prepayments are an adjusting journal entry.<BR><BR>Regards<BR><BR>Dean

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