Question : If 6% Pref. share capital of Rs. 2,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement its effect on cash flow will be :
Option 1: Cash used from financing activities Rs.2,12,000
Option 2: Cash received from financing activities Rs.2,12,000
Option 3: Cash used (Payment) from financial activities Rs.2,10,000
Option 4: Cash used (Payment) from financial activities 2,00,000
Correct Answer: Cash used (Payment) from financial activities Rs.2,10,000
Solution : Redemption of Pref. Share = Rs.200000 + 10000 = 210000
Note = Rs.200000 + 5% (Premium on Redemption) = Rs.210000
Cash Used (Payment) From Financial activity Rs.210000
Hence the correct answer is Option 3.
Question : If a machine whose original cost is Rs.40,000 having accumulated depreciation Rs.12,000, were sold for Rs.34,000 then while preparing Cash Flow Statement its effect on cash flow will be :
Question : If the amount of goodwill at the beginning of the year is Rs.40,000 and Rs.48,000 at the end of the year then while preparing cash flow statement its effect on cash flow will be :
Question : The cash flow statement begins with :
Question : Acquired machinery for Rs. 2,50,000 paying 20% down and executing a bond for the balance payable. Cash flow from investing activities is
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