"Debentures were redeemed in the previous year". Treatment for the adjustment.
Dear student
when debentures are redeemed then company has to pay principal amount with interest. under the indirect method, the interest paid is added in the operating activities of the cash flow statement under net income or net loss.
2) once redeemed , the amount of debentures redeemed will show up in the financing activities section of a company's cash flow statement as repayment(redemption) or as outflow of cash, of long - term debt.as well interest is also shown in the financing activities as outflow.
note: interest is calculated on the debentures left after redemption. interest is calculated on the debentures which are left after redemption.. also, you have to observe the the date of redemption. date of redemption helps to find out for how many months you have to calculate the interest.
Regards
when debentures are redeemed then company has to pay principal amount with interest. under the indirect method, the interest paid is added in the operating activities of the cash flow statement under net income or net loss.
2) once redeemed , the amount of debentures redeemed will show up in the financing activities section of a company's cash flow statement as repayment(redemption) or as outflow of cash, of long - term debt.as well interest is also shown in the financing activities as outflow.
note: interest is calculated on the debentures left after redemption. interest is calculated on the debentures which are left after redemption.. also, you have to observe the the date of redemption. date of redemption helps to find out for how many months you have to calculate the interest.
Regards