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What is the treatment of debit notes and credit notes on Cash Flow Statement (indirect method)?

How it is shown on Cash Flow from Operating Activities?

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Question added by Khurrum Iqbal , Accountant , Akun Logistic Services
Date Posted: 2019/02/21
Ranjit Bablu
by Ranjit Bablu , Manager Accounts & Finance , Fairair Engineers Pvt Ltd

 If we made debit note to supplier it means creditors decreases. which affects current liabilities in Balance sheet as well as if we got any credit note from Debtors it means debtors decreases which effects our Balance sheet.Overall these debit and credit note affects our Balance sheet not cash flow statement. There is no special treatment of  Debit and credit note in Cash flow statement.

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