On which balance(opening or closing) should we calculate interest on debentures if date of redemption or issue is not given in cash flow statement. And also how to deal with interest on investments when date of purchase or sale not given in cash flow statement

Hi Rohan,

(a) In case of interest on ​debentures, if date of redemption/issue is not given, then we calculate interest on the opening balance. It is assumed that redemption/issue takes place at year end.

(b) In case of interest on investments, if the date of purchase/sale is not given, then by giving appropriate note you can proceed with the solution. That is, you can assume the sale/purchase to be either ​at the beginning/end of the year.