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प्रश्न
What will be the effect of issue of Bonus shares on Cash Flow Statement?
पर्याय
No effect
Inflow in Financing Activity
Inflow in Operating activity
Inflow in Investing Activity
उत्तर
No effect
APPEARS IN
संबंधित प्रश्न
Short Answer Question
How are the various activities classified (as per AS-3 revised) while preparing cash flow statement?
For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing.
(a) Acquired machinery for Rs 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b) Paid Rs 2,50,000 to acquire shares in Informa Tech. and received a dividend of Rs 50,000 after acquisition.
(c) Sold machinery of original cost Rs 2,00,000 with an accumulated depreciation of Rs 1,60,000 for Rs 60,000.
Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:
| (a) Cash Sale of Goods | (b) Cash Received against Revenue from Services rendered |
| (c) Cash Purchase of Goods | (d) Cash Paid against Services Taken |
| (e) Patents Purchased | (f) Marketable Securities |
| (g) Bank Overdraft | (h) Proceeds from Issue of Debentures |
| (i) Purchase of Shares | (j) Repayment of Long-term Loan |
| (k) Commission Received | (l) Redemption of Debentures |
| (m) Interest on Debentures | (n) Interest on Investments |
| (o) Income Tax Paid | (p) Income Tax Paid on Gain of Sale of Asset |
| (q) Cash Received from Debtors | (r) Cash Paid to Creditors |
Classify the following transactions as Operating Activities for a financial company and a non-financial company:
(a) Purchase of Shares on a Stock Exchange.
(b) Dividend received on Shares.
(c) Dividend paid on Shares.
(d) Loans given.
(e) Loans taken.
(f) Interest paid on borrowings.
For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing:
(a) Acquired machinery for ₹2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b) Paid ₹2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of ₹50,000 after acquisition.
(c) Sold machinery of original cost of ₹2,00,000 with an accumulated depreciation of ₹1,60,000 for ₹60,000.
What is meant by 'Operating Activities'?
Insurance Claim received by Albert Co. Ltd. of ₹ 5,00,000 for Loss of Machinery due to theft will be recorded in Cash Flow Statement in which of the following manner?
A company issued 20,000; 9% Debentures of ₹ 100 each at 10% Discount. These debentures were to be redeemed at 15% Premium at the end of 5 years. The balance in Securities Premium Account as of the date of Issue was ₹ 3,70,000. How this transaction will be reflected in Cash Flow Statement?
Read the following hypothetical text and answer the given questions on the basis of the same:
Aashna, an alumnus of CBSE School, initiated her start up Smartpay, in 2015. Smartpay is a service platform that processes payments via UPI and POS, and provides credit or loans to their clients. During the year 2021-22, Smartpay issued bonus shares in the ratio of 5:1 by capitalising reserves. The profits of Smartpay in the year 2021-22 after all appropriations was ₹ 7,50,000. This profit was arrived after taking into consideration the following items -
| Particulars | Amount (₹) |
| Interim Dividend paid during the year | 90,000 |
| Depreciation on Machinery | 40,000 |
| Loss of Machinery due to fire | 20,000 |
| Insurance claim received for Loss of Machinery due to Fire |
10,000 |
| Interest on Non-Current Investments received | 30,000 |
| Tax Refund | 20,000 |
Additional Information:
| Particulars | 31.3.22 (₹) | 31.3.21 (₹) |
| Equity Share Capital | 12,00,000 | 10,00,000 |
| Securities Premium Account | 3,00,000 | 5,00,000 |
| General Reserve | 1,50,000 | 1,50,000 |
| Investment in Marketable Securities | 1,50,000 | 1,00,000 |
| Cash in hand | 2,00,000 | 3,00,000 |
| Machinery | 3,00,000 | 2,00,000 |
| 10% Non-Current Investments | 4,00,000 | 3,00,000 |
| Bank Overdraft | 2,50,000 | 2,00,000 |
| Goodwill | 30,000 | 80,000 |
| Provision for Tax | 80,000 | 60,000 |
- Goodwill purchased during the year was ₹ 20,000.
- Proposed Dividend for the year ended March 31, 2021 was ₹ 1,60,000 and for the year ended March 31, 2022 was ₹ 2,00,000.
You are required to:
- Calculate Net Profit before tax and extraordinary items.
- Calculate Operating profit before working capital changes.
- Calculate Cash flow from Investing activities.
- Calculate Cash flow from Financing activities.
- Calculate closing cash and cash equivalents.
Calculate 'Cash Flows from Investing Activities' and 'Cash Flows from Financing Activities' for the year ended 31st March 2021 from the following Balance Sheet of Kamna Ltd. as 31st March 2021 showing your workings clearly:
| Kamna Ltd. Balance Sheet as at 31st March, 2021 |
|||
| Particulars | Note No. | 31st March, 2021 (₹) |
31st March, 2020 (₹) |
| I. Equity and Liabilities | |||
| 1. Shareholders' Funds | |||
| (a) Share Capital | 12,00,000 | 11,00,000 | |
| (b) Reserves and surplus | 1 | 3,00,000 | 2,00,000 |
| 2. Non-Current Liabilities | |||
| Long-term borrowings | 2,40,000 | 1,70,000 | |
| 3. Current Liabilities | |||
| Trade payables | 2,20,000 | 2,81,000 | |
| Total | 19,60,000 | 17,51,000 | |
| II. Assets | |||
| 1. Non Current Assets | |||
| (a) Fixed Assets | |||
| (i) Tangible Assets | 2 | 10,70,000 | 8,50,000 |
| (ii) Intangible Assets | 3 | 40,000 | 1,12,000 |
| 2. Current Assets | |||
| (a) Current Investments | 2,40,000 | 1,50,000 | |
| (b) Inventories | 1,20,000 | 1,21,000 | |
| (c) Trade Receivables | 1,70,000 | 1,43,000 | |
| (d) Cash and Cash Equivalents | 3,20,000 | 3,75,000 | |
| Total | 19,60,000 | 17,51,000 | |
Notes to Accounts:
| Note No. |
Particulars | 31st March, 2021 (₹) |
31st March, 2020 (₹) |
| 1. | Reserve and Surplus: | 3,00,000 | 2,00,000 |
| Surplus i.e. Balance in | |||
| Statement of Profit & Loss | |||
| 2. | Tangible Assets: | ||
| Machinery | 12,70,000 | 10,00,000 | |
| Accumulated Depreciation | (2,00,000) | (1,50,000) | |
| 10,70,000 | 8,50,000 | ||
| 3. | Intangible Assets: | ||
| Goodwill | 4,000 | 1,12,000 |
Additional Information:
A piece of machinery costing ₹ 24,000 on which accumulated depreciation was ₹ 16,000, was sold for ₹ 6,000.
Interest of ₹3,000 received in cash on loans and advances will result in :
In case of a financial enterprise whose main business is lending and borrowing, ‘interest paid' and ‘interest received’ are classified as ______.
Which of the following transaction will result in no flow of cash?
