Experts if in the question of cash flow statement's balance sheet
share capital's balance has decreased in the current year then what does it shows is it redeeming of shares or selling then in that case what to do in the cash fow statement ?

Question

Experts if in the question of cash flow statement's balance
sheet
share capital's balance has decreased in the current
year then what does it shows is it redeeming of shares
or selling then in that case what to do in the cash fow statement ?

Ishi · Accepted Answer

Solution:
If share capital reduces in current year than it is the outflow of
cash in financing activities as we repaid those shares We deduct
that amount under financing activities

For example Previous year share capital = Rs50000, Current year
share capital = Rs 30000

PARTICULARS
AMOUNT

Cash flow from financing activities

(-) Redemption of share
(20000)

PARTICULARS	AMOUNT
Cash flow from financing activities
(-) Redemption of share	(20000)

Experts if in the question of cash flow statement's balance sheet share capital's balance has decreased in the current year then what does it shows is it redeeming of shares or selling then in that case what to do in the cash fow statement ?

Experts if in the question of cash flow statement's balance sheet
share capital's balance has decreased in the current year then what does it shows is it redeeming of shares or selling then in that case what to do in the cash fow statement ?