Q50489 What are the sources and uses of fund ?

Question based on DIMS Solved Assignment and other course

Answer:

Sources of Fund

Sources of fund are indicated by increase in liability and decrease in assets. The main sources of funds are:

  1. Fund from operation activities
  2. Issue of shares capital
  3. Issue of debentures
  4. Raising of long term loans
  5. Receipts from partly paid shares , called up
  6. Amount received from sales of non current or fixed assets
  7. Non trading receipts such as dividend received
  8. Sale of investments ( Long term )
  9. Decrease in working capital (as per schedule of changes in working capital)

Applications or Uses of Funds

Applications of fund are indicated by decrease in liability and increase in assets. The main uses of funds are:

10. Funds lost in operations ( Balance negative in second step )

11. Redemption of preference share capital

12. Redemption of debentures

13. Repayment of long term loans

14. Purchase of long term loans

15.Purchase of long term investments

16. Non trading payments

17. Payment of tax

18. Payment of dividends

19. Increase in working capital (as per schedule of changes in working capital)

ed010d383e1f191bdb025d5985cc03fc?s=120&d=mm&r=g

DistPub Team

Distance Publisher (DistPub.com) provide project writing help from year 2007 and provide writing and editing help to hundreds student every year.