Schedule of changes in working capital
The schedule of changes in working capital can be prepared by comparing the current assets and the current liabilities of two periods. It may be in the following form.
SCHEDULE OF CHANGE IN WORKING CAPITAL
| Items | As | As on | Change | |
| — | — | Increase | Decrease | |
| (+) | (-) | |||
| Current Assets
Cash balance Bank balance Marketable securities Accounts receivable Stock-in-trade Prepaid expenses |
||||
| Current Liabilities
Bank overdraft Outstanding expenses Accounts payable Net Increase / Decrease in Working Capital |
Rules for preparing the Schedules:
- Increase in a current asset, result in increase (+) in “working capital”
- Decrease in current asset, results in decrease (-) in “working capital”
- Increase in a current liability, results in decrease (-) in “Working capital”
- Decrease in a current liability, results in increase (+) in “Working capital”
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