Q 434.Dont send links please.

​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.
 
            

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



 

  • -1
What are you looking for?