what is treatment of
PREMIUM ON REDEMPTION OF DEBENTURES
PREMIUM ON ISSUE OF DEBENTURES
PREMIUM ON REDEMPTION OF SHARES
PREMIUM ON ISSUE OF SHARES
in cash flow if given in adjustments.....
how are theses to appear in operating activities???
Dear Students,
Premium on Redemption of Debentures/Shares is subtracted in the Cash Flow from Financing Activities because it is outflow of Cash (financing nature). On the other hand, it is added to the Net Profit before Taxation an Extraordinary Items (under Cash Flow from Operating Activities) because it is added to the Net Profit while preparing Profit and Loss A/c.
Regards
Premium on Redemption of Debentures/Shares is subtracted in the Cash Flow from Financing Activities because it is outflow of Cash (financing nature). On the other hand, it is added to the Net Profit before Taxation an Extraordinary Items (under Cash Flow from Operating Activities) because it is added to the Net Profit while preparing Profit and Loss A/c.
Regards