Additional info: 1 Equity shares were issued on 31st march, 2022 2 Interim dividend on equity shares - Accountancy - Cash Flow Statement

Question

Additional info:
1 Equity shares were issued on 31st march, 2022
2 Interim dividend on equity shares was paid @15%
3 Preference shares were redeemed on 31st march, 2022 at a premium
of 5% Premim was debited to the statement of profit and loss
4 12% debentures of face value 1,00,000 were issued on 31st march,
2022

Ishi · Accepted Answer

Solution:

CASH FLOW FROM FINANCING ACTIVITIES

PARTICULARS
AMOUNT
AMOUNT

CASH FLOW FROM FINANCING ACTIVITIES

Issue of equity shares
125000

(-) Interim dividend paid (400000 x 15%)
(60000)

(-) Premium paid on redemption of preference shares (150000 x
5%)
(7500)

(+) Issue of 12% debentures
100000

(-) Interest paid on preference shares (550000 x10%)
(55000)

(-) Interest paid on 12% debentures (300000 x 12%)
(36000)

(-) Redemption of 10% preference share capital
(150000)

Cash used from financing activities

(83500)

PARTICULARS	AMOUNT	AMOUNT
CASH FLOW FROM FINANCING ACTIVITIES
Issue of equity shares	125000
(-) Interim dividend paid (400000 x 15%)	(60000)
(-) Premium paid on redemption of preference shares (150000 x 5%)	(7500)
(+) Issue of 12% debentures	100000
(-) Interest paid on preference shares (550000 x10%)	(55000)
(-) Interest paid on 12% debentures (300000 x 12%)	(36000)
(-) Redemption of 10% preference share capital	(150000)
Cash used from financing activities		(83500)