Cash Flow Statement Page 14

ADVERTISEMENT

MODULE - 6A
Cash Flow Statement
Analysis of Financial Statements
shareholders Capital. Examples of cash flow arising from financing activities
are
– Cash proceeds from issue of shares or other similar instruments.
– Cash proceeds from issue of debentures, loans, notes, bonds, and other
Notes
short-term borrowings
– Cash repayment of amount borrowed
Cash Inflow from financing activities are
– Issue of Equity and preference share capital for cash only.
– Issue of Debentures, Bonds and long-term note for cash only
Cash outflow from financing activities are :
– Payment of dividends to shareholders
– Redemption or repayment of loans i.e. debentures and bonds
– Redemption of preference share capital
– Buy back of equity shares.
Illustration 3
From the following information. Calculate the Cash from financing activities:
31.12.2006
31.12.2007
Particulars
Rs
Rs
Equity share capital
400,000
500,000
10% debentures
150,000
100,000
Securities premium
40000
50000
Additional Information : Interest paid on debentures Rs10000.
Solution. Calculation of Cash from financing activities
Particulars
Rs
Cash proceeds from the issue of shares
110000
(Including premium)
Interest paid on debenture
10000
Redemption of debenture
50000
60,000
50,000
75
ACCOUNTANCY

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial