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

Particulars

31^st March,

2019

(₹)

31^st March,

2018
(₹)

Equity Share Capital
5,25,000
4,00,000

10% Preference Share Capital 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.

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Solution

Cash Flow from Financing Activities

for the year ended March 31, 2019

Particulars

Amount

(₹)

Amount

(₹)

Issue of Shares

1,25,000

Transfer to Securities Premium Reserve

1,25,000

Issue of Debentures

1,00,000

Premium on redemption of Preference Shares (5% of 1,50,000)

(7,500)

Interim Dividend Paid(15% of 4,00,000)

(60,000)

Redemption of Preference Share Capital

(1,50,000)

Interest on Debentures (12% of 3,00,000)

(36,000)

Interest on Preference Share Capital

(55,000)

Net Cash Flow from Financing Activities

41,500

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Similar questions

From the following extracts taken from the Balance sheets of M/s Khanduja Ltd., on 31st March as dthe additional information provided, you are required to Calculate:
(i) Cash Flows from Operting Activities.
(ii) Cash Flows from Financing Activities.
$\begin{matrix} Equity and Liabilities & 31 - 03 - 2015 & 31 - 03 - 2016 Equity Share Capital & 20, 00, 000 & 30, 00, 000 10 % Preference Share Capital & 2, 00, 000 & 1, 00, 000 Securities premium Reserve A/c & - & 95, 000 Profit and Loss Balance & 4, 00, 000 & 8, 00, 000 10 % Debentures & 10, 00, 000 & 10, 00, 000 \end{matrix}$

Additional Information:
1. Fresh equity shares were issued on 31st March 2016 at a premium of 10%
2. Interim Dividend was paid on equity shares @8%
3. Preference shares were redeemed on 31st March, 2016 at premium of 5%. Premium on redemption was charged against premium received on issue of fresh equity shares.

XYZ. Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:

Particular

31^st March,

2019 (₹)

31^st March,

2018 (₹)

2,00,000

Additional Information:
1.Interest paid on debentures ₹ 19,000.
2. Dividend paid in the year ₹ 50,000.
3. During the year, XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by captialising reserve.

Q. The following particulars are extracted from the Balance Sheets of Shree Nath Ltd.

	$2013$	$2014$
Share Capital	$4, 00, 000$	$8, 00, 000$
Share Premium	$8, 000$	$48, 000$
$5 %$ Debentures	$4, 00, 000$	$2, 00, 000$

Debentures where redeemed and debenture holders are paid as under:
(i) Rs.

90, 000

in cash.
(ii) Rs.

1, 00, 000

Equity Shares of Rs.

10

each issued as fully paid at a premium of Re.

1

per share.
The balance of Equity Shares are issued for cash at a premium of Re.

1

per share. Here the amount of funds from issue of shares is _________________.

From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities:

Particular	31^st March 2019 (₹)	31^st March 2018 (₹)
Equity Share Capital	13,75,000	11,25,000
5% Preference Share Capital	5,00,000	7,50,000
General Reserve	3,75,000	3,00,000
Surplus i.e., Balance in Statement of Profit and Loss	3,75,000	(3,50,000)
Securities Premium Reserve	25,000	...
Provision for Tax	1,00,000	50,000
Non-current Liabilities (8% Debentures)	6,50,000	3,75,000
Short-term Borrowings (8% Bank Loan)	1,00,000	1,25,000
Trade Payables	5,00,000	2,50,000
Trade Receivables and Inventories	13,00,000	11,50,000

Additional Information:
(i) During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date.
(ii) Dividend on Equity Shares @ 8% was paid on Opening Balance.
(iii) Income tax ₹ 1,12,500 has been provided during the year.
(iv) Preference shares were redeemed at par at the end of the year.

Q. The following balances have been extracted from the books of Vanity Ltd. as at 31

^{s t}

March, 2017:
Trial Balance as at 31

^{s t}

March, 2017

Particulars	Debit (Rs.)	Credit (Rs.)
Equity Share Capital ( $5, 000$ share of $R s . 100$ each fully paid)		$5, 00, 000$
Fixed Assets	$7, 30, 000$
Reserves Surplus		$2, 00, 000$
Inventories	$50, 000$
Cash and Bank Balances	$1, 70, 000$
Creditors		$40, 000$
Bill Payable		$20, 000$
Underwriting Commission on issue of shares	$10, 000$
$5 %$ Debentures ( $\frac{1}{5}$ of the Debentures to be redeemed on 31 $^{s t}$ March, 2018)		$2, 00, 000$
Proposed Dividend		$12, 000$
Interest accrued and due on $5 %$ Debentures		$8, 000$
Trade Receivables	$20, 000$
TOTAL	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$

You are required to prepare as at 31

^{s t}

March, 2017:
(i) The Balance Sheet of Vanity Ltd. as per Schedule III of the Companies Act, 2013
(ii) Notes to Accounts.

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

Cash Flow from Financing Activities for the year ended March 31, 2019
	Particulars	Amount (₹)	Amount (₹)
	Issue of Shares	1,25,000
	Transfer to Securities Premium Reserve	1,25,000
	Issue of Debentures	1,00,000
	Premium on redemption of Preference Shares (5% of 1,50,000)	(7,500)
	Interim Dividend Paid(15% of 4,00,000)	(60,000)
	Redemption of Preference Share Capital	(1,50,000)
	Interest on Debentures (12% of 3,00,000)	(36,000)
	Interest on Preference Share Capital	(55,000)
	Net Cash Flow from Financing Activities		41,500