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

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