Question : Kunal Ltd under which activity will the amount of interest paid on a debentures settled in the current year be shown?
Option 1: Investing Activities
Option 2: Financing Activities
Option 3: Both investing and Financing Activities
Option 4: Operating Activities
Correct Answer: Financing Activities
Solution : Answer = Financing activities
Interest paid on debentures is a financing activity because it involves payments related to obtaining financial resources for the company. Financing activities involve raising capital and repaying debts, which includes paying interest on debentures. Therefore, the amount of interest paid on debentures will be shown under financing activities in the cash flow statement. Hence, the correct option is 2.
Question : Royal Ltd is a financing company. Under which activity will the amount of interest paid on a loan settled in the current year be shown?
Question : J and K Bank Ltd. issued 2,00,000, 9% All of these Debentures were issued and fully subscribed. The amount of the receipt will be shown as
Question : IDFC Bank Ltd. issued 1,00,000, 9% Debentures of Rs.100 each for subscription. The issue was subscribed. The amount of receipt will be shown as __________.
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