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Give examples of non cash transactions?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

Hi I am Kiran. Can you please Give examples of non cash transactions?

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

**Non-Cash Investing, Capital and Financing Activities** Report information about investing, capital and financing activities that affect assets and liabilities but do not result in cash receipts or cash payments in the period. Present this information with the statement of cash flows in the section titled “non-cash transactions.” Include line items in the non-cash transaction section of the statement of cash flows for: * Net change in fair value of investments * Donation of capital assets * Borrowing under a capital lease purchase * Other such as: * The acquisition of assets by assuming directly-related liabilities * Exchanging non-cash assets or liabilities for other non-cash assets or liabilities When transactions are part cash and part non-cash, report only the cash portion within the statement of cash flows. Report the non-cash portion in the non-cash transaction section supplemental to the statement of cash flows.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

There are many transactions which do not involve cash exchange. Such transactions are - Providing depreciation Changing the value of inventory Making provisions for doubtful debts Providing for bad debts Accounting for loss or profit on sale of assets.

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