# Question 26 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 26 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

Question 26 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

26. from the following information, calculate the net cash flow from operating activities & financing activities:

 Particulars 31.3.2021 ₹ 31.3.2022 ₹ Equity share capital 20,00,000 30,00,000 10% preference share capital 2,00,000 1,00,000 Securities premium A/c – 1,00,000 Profit and loss A/c 4,00,000 8,00,000 10% debentures 10,00,000 10,00,000

Preference shares were redeemed on 31st march ,2022 at premium of 5% dividend on equity shares was paid @ 8% fresh issue of equity shares was done on 1st April, 2021.

## The solution of Question 26 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

Calculation of net cashflow from operating
Activities and financing activities

 Particulars ₹ ₹ Net profit before tax (W. note) 6,60,000 Add: premium on redemption of preference share 5,000 Interest on debentures 1,00,000 1,05,000 Cash flow from op. activities 7,65,000 Now Cash flow from financing activities Issue of equity share capital (30,00,000-20,00,000+1,00,000 (premium) 11,00,000 Redemption of preference share (1,00,000+5,000) (1,05,000) interest paid on debentures (10,00,000×10/100 (1,00,000) dividend paid on equity share (30,00,000×8/100) (2,40,000) Dividend paid on preference share (2,00,000x10x100) (20,000) Net cash inflow from financing activities 6,35,000

Working note:

Calculation of net profit before Tax

 Closing balance as per profit & loss A/c 8,00,000 Less: opening balance as per P&LA/c (4,00,000) 4,00,000 Add: dividend on preference shares 20,000 Dividend on equity shares 2,40,000 Net profit before tax 6,60,000

Comment if you have any Doubts.

What is the cash flow statement? why do we need to prepare?