In the Balance Sheet , Expenses On Issue of Shares and Debentures are Given For The Year 2009 the Balance is Nil , and For The Year 2010 the Balance Is Given as Rs 2000. Also In the Adjustment it is given that expenses on issue of shares and debentures paid during the year 2010 are rs 2700. What will be The Treatment Of This Cash Flow Statement . Please Elaborate 

Dear Student,

Amount of Rs 2,000 given in the balance sheet refers to the total un-amortised balance of Expenses on Issue of shares & debentures at the end of the year 2010; Amount given in adjustment refers to the actual expenses incurred or paid during year 2010;

Therefore Rs 2,700 was the total expenses paid whereas Rs 700 was charged for the year to P&L and the remaining would be charged in coming years; In cash flow statement Rs 2,700 would be deducted under financing activities;

Hope this clears your doubt!!!

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Regards,

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