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Question
Balance Sheet (Extract)
| Liabilities | 31-03-2019 (₹) |
31-03-2020 (₹) |
| 12% debentures | 2,00,000 | 1,60,000 |
Additional Information:
Interest on debentures is paid on half yearly basis on 30th September and 31st March each year.
Debentures were redeemed on 30th September, 2019.
How much amount (related to above information) will be shown in Financing Activity for Cash Flow Statement prepared on 31st March, 2020?
Options
Outflow ₹ 40,000
Inflow ₹ 42,600
Outflow ₹ 61,600
Outflow ₹ 64,000
MCQ
Solution
Outflow ₹ 61,600
Explanation:
Cash flow from financing activities:
| Redemption of debentures | ₹ 40,000 |
| Interest on debentures | ₹ 21,600 |
| ₹ 61,600 |
Interest on debentures:
`= 1,60,000 xx 12/100 + 40,000 xx 12/100 xx 6/100`
= ₹ 19,200 + ₹ 2,400
= ₹ 21,600
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