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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Jalco Ltd. provided the following information; calculate Net Cash Flow from Financing Activities:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|
| Equity Share Capital | 12,00,000 | 10,00,000 |
| 12% Debentures | 2,00,000 | 1,00,000 |
Additional Information:
1. Interest paid on debentures ₹19,000.
2. Dividend paid in the year ₹50,000.
3. During the year, Jalco Ltd. issued bonus shares in the ratio of 1 : 5 (1 bonus share for every 5 held) by capitalising reserves.
Cash Flow from Financing Activities
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Proceeds from Issue of 12% Debentures | 1,00,000 | |
| Interest Paid | (19,000) | |
| Dividend Paid | (50,000) | |
| Net Cash Flow from Financing Activities | 31,000 |
Note: The full ₹2,00,000 increase in Equity Share Capital (10,00,000 − 12,00,000, matching a 1-for-5 bonus issue on the opening balance) arose from capitalising reserves via a Bonus issue, which involves no flow of cash, so it is not considered in Financing Activities.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.35 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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