Question 34 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 34 Chapter 5 of +2-B

Table of Contents

The solution of Question 34 Chapter 4 of +2-B: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Cash Flow from Financing Activities

34. From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:

Particulars	31st March,	31st March,
	2019 Rs	2018 Rs
Equity Share Capital	5,25,000	4,00,000
10% Preference Share Capita	4,00,000	5,50,000
Securities Premium Reserve	2,25,000	1,00,000
12% Debentures	4,00,000	3,00,000

Additional Information:
1. Equity Shares were issued on 31st March, 2019.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2019 at a premium of 5%. Premium paid
was debited to Statement of Profit and Loss.
4. 12% Debentures of face value 1,00,000 were issued on 31st March, 2019.

The solution of Question 34 Chapter 4 of +2-B: –

Cash Flow From for the year ended 31st March, 2019
Particulars		Rs
I. Cash Flow from Financing Activities
Proceeds from Issue of Equity Shares	1,25,000
Transfer to Securities Premium Reserve	1,25,000
Proceeds from Issue of Debentures	1,00,000	3,50,000
Less: Premium on redemption of Preference Shares	7,500
Less: Interim Dividend Paid	60,000
Less: Redemption of Preference Share Capital	1,50,000
Less: Interest on Debentures	36,000
Less: Interest on Preference Share Capital	55,000	3,08,500
Net Cash Flow from Financing Activities		41,500