Fund example sentences



Accounting Standard-3 (AS-3), issued by The Institute of Chartered Accountants of India (ICAI) in june 1981, which dealt with a statement showing 'Changes in Financial Position', (Fund Flow Statement), has been revised and now deals with the preparation and presentation of Cash flow statement.They were also expected to contribute to the general funds of the community of followers.To meet this requirement, the company may decide to create a sinking fund and invest adequate amount in marketable securities or bonds of other business entities.Issue of debentures, borrowing from commercial banks and financial institutions and accepting public deposits are some of the examples of external sources of funds commonly used by business organisations.The aim is to allow students to understand the ways in which this role of the government is linked to concerns addressed in our Fundamental Rights.The advantage of such an option is that a company can redeem the debentures at its convenience whenever it has surplus funds.No matter how small or large a business is, it needs funds for its day-to-day operations.In the choice of source of funds business should be in a sound financial position so as to be able to repay the principal amount and interest on the borrowed amount.A company can raise funds through issue of debentures, which bear a fixed rate of interest.Dishonour of a cheque means return of the cheque unpaid, generally due to insufficient funds in the customer's account with the bank.However, there are some fundamental differences between the two.It includes the Capital Fund or Accumulated Fund, special purpose funds, and current liabilities on the left hand or liabilities side, and fixed assets and current assets on the right hand or assets side.Borrowed capital, on the other hand, refers to the funds that are generated through loans or borrowings from other individuals or institutions., the cost of procurement of funds and cost of utilising the funds.It is also a common practice to add some of the capitalised items like legacies, entrance fees and life membership fees directly in the capital fund.

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