Which of the following are the application of funds?
i.Redemption of Preference share capital.
ii.Payment of Dividend.
iii.Increase in working capital.

Only (i) and (ii)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Only (ii) and (iii)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Only (i) and (iii)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

(i), (ii) and (iii)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Only (i) and (ii)
Application of funds.
The Source and Application of Funds Statement shows the total sources of new funds raised between Balance Sheet dates and the total uses of those funds in the same period. In short, increase in working capital is considered as an increase in net current assets or an application of funds whereas decrease in working capital is considered as an increase in current liability or a source of funds. The increase or decrease is to be reconciled with the changes in working capital statement.
Hence, increase in does not constitute application of funds.

Suggest Corrections

Similar questions

Q. Which of the following are sources of funds?
(I) Issue of shares.
(II) Cash collected from debtors
(III) Sales of assets
(IV) Redemption of debentrues
(V) Payment of dividend

Q. Statement - I : Capital structure refers to composition of long-term funds.
Statement - II : These include equity share capital, preference share capital, debentures, all debts and all reserves.

Under which head and how are the following items shown in the Balance Sheet of a company under Schedule III:

(i) Calls-in-Arrears; (ii) Share Application Money Pending Allotment; (iii) Unpaid Dividend; and (iv) Dividend not paid on Cumulative Preference Shares?

Q. If for the redemption of preference share capital of Rs. 1,00,000, 5,000 equity shares of Rs. 10 each are issued at a discount of 10%, the amount to be transferred to Capital Redemption Reserve Fund will be _________.

How will you disclose the following items in the Balance Sheet of a company:

(i) Loose Tools

(ii) Uncalled liability on partly paid-up shares

(iii) Debentures Redemption Reserve

(iv) Mastheads and publishing titles

(v) 10% debentures

(vi) Proposed dividends

(vii) Share forfeited account

(viii) Capital Redemption Reserve

(ix) Mining Rights

(x) Work-in-progress

Join BYJU'S Learning Program

Which of the following are the application of funds?i.Redemption of Preference share capital.ii.Payment of Dividend.iii.Increase in working capital.

Which of the following are the application of funds?
i.Redemption of Preference share capital.
ii.Payment of Dividend.
iii.Increase in working capital.