Question 43 Chapter 5 of +2-B

Question 43 Chapter 5 of +2-B

Cash Flow From Investing Activities

43. (Cash Flow from Financing Activities) From the following particulars of Tushar Ltd., calculate Cash Flows from Financing Activities :

Particulars 2017 ₹2018 ₹Particulars 2017 ₹2018 ₹
Equity Share Capital 6,00,0008,00,000Discount on Issue of Debentures 5,0006,000
18% Pref. Share Capital 4,00,0002,00,000Underwriting commission on Issue of Shares 10,000
Securities Premium Reserve 1,00,0001,30,000   
14% Debentures 2,00,0003,00,000   

Additional Information :
1. Preference Dividend on preference shares and an interim Dividend @15% were paid on equity shares on 31.12.2018
2. Preference shares were redeemed on 31.12.2018 at a premium of 5%. Such premium has been provided out of profits.
3. New shares and debentures were issued on 31.12.2018

The solution of Question 43 Chapter 5 of +2-B: – 

Cash Flow from Investing Activities
The inflow of cash :  
Add: Issue equity shares2,00,000 
Securities Premium Reserve Received30,000 
Cash from Debentures1,00,0003,30,000
The outflow of cash :  
Less: Underwriting Commission10,0000 
Discount on Debentures1,000 
Redemption of Preference Shares2,00,000 
Premium on Redemption10,000 
Preference Dividend Paid (18% of ₹ 4,00,000)72,000 
Interest paid on Debentures (14% of ₹ 2,00,000)28,000 
Interim dividend paid (15% of ₹ 6,00,000)90,0004,11,000
Net cash inflow from investing activities 81,000

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 43 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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