Q 434 Dont send links please â ‹Q23 Calculate Cash flows from financing activities from the following - Accountancy - Cash Flow Statement

Question

Q 434 Dont send links please

â€‹Q23 Calculate Cash flows from financing
activities from the following particulars:

31 3 2016
31 3 2015

Particulars
Rs
Rs

Equity Share Capital
8% Pref Share Capital
Long-term Borrowings (10% Debentures)
Securities Premium Reserve
Discount on Debentures
Underwriting Commission on issue of Shares
Underwriting Commission on issue of Debentures
10,00,000
1,50,000
4,00,000
10,000
5,000
5,000
2,500
8,00,000
2,00,000
3,00,000
–
3,000
–
–

Additional Information :

(i) New shares and debentures were issued on March 31, 2016

(ii) Dividend on preference shares and an interim dividend @20% on
equity shares was paid on March 31,2016

(iii) Preference shares were redeemed on March 31, 2016 at a
premium of 4% Premium on redemption was provided out of profit

Neha Chopra · Accepted Answer

Dear Student

Cash Flow from
Finacing activities

Proceeds from issue of Equity
shares
200,000

Proceeds from Securities
Premium
10,000

Proceeds of Long Term
Borrowings (Total Proceeds less Discount)
98,000

Proceeds of Bank OD
0

Less : Interest Paid (3,00,000
x 10%)
(30,000)

Less : Redemption of
Preference shares
(50,000)

Less : Underwritting
Commission on Shares
(5,000)

Less : Underwritting
Commission on Debentures
(2,500)

Less : Premium on Redemption
of Preference shares (50,000 x 4%)
(2,000)

Less : Interim dividend paid
on Equity shares (10,00,000 x 20%)
(200,000)

Less : Dividend Paid on
Preference shares (2,00,000 x 8%)
(16,000)
2,500

Net Cash Flow From Financing
activities

2,500

Note :
1 It has been assumed that Interim dividend is paid on all the
Shares i e including shares issued on 31 03 16 because Issue date
of shares is same as that of Dividend date
2 It has been assumed that the underwriting commission has been
paid in cash to respective underwriters

Regards

	31.3.2016	31.3.2015
Particulars	Rs.	Rs.
Equity Share Capital 8% Pref. Share Capital Long-term Borrowings (10% Debentures) Securities Premium Reserve Discount on Debentures Underwriting Commission on issue of Shares Underwriting Commission on issue of Debentures	10,00,000 1,50,000 4,00,000 10,000 5,000 5,000 2,500	8,00,000 2,00,000 3,00,000 – 3,000 – –

Cash Flow from Finacing activities
Proceeds from issue of Equity shares	200,000
Proceeds from Securities Premium	10,000
Proceeds of Long Term Borrowings (Total Proceeds less Discount)	98,000
Proceeds of Bank OD	0
Less : Interest Paid (3,00,000 x 10%)	(30,000)
Less : Redemption of Preference shares	(50,000)
Less : Underwritting Commission on Shares	(5,000)
Less : Underwritting Commission on Debentures	(2,500)
Less : Premium on Redemption of Preference shares (50,000 x 4%)	(2,000)
Less : Interim dividend paid on Equity shares (10,00,000 x 20%)	(200,000)
Less : Dividend Paid on Preference shares (2,00,000 x 8%)	(16,000)	2,500
Net Cash Flow From Financing activities		2,500