SOLUTION Principal amount i.e., Rs. 50,000 will be classified as an investing activity whereas interest amount Rs. 10,000 will be classified as financing activity.
SOLUTION (i) Expenses on production of Films.(ii) Selling the Films to distributors.
SOLUTION (i) Cash collection from booking of rooms;(ii) Cash collection from providing room service.
SOLUTION (i) Revenue from Advertisements in Newspapers;(ii) Purchase of printing paper and printing ink.
SOLUTION (i) Revenue from Advertisements;(ii) Production expenses of Episode.
SOLUTION It will be (i) Cash inflow from operating activities in case of a finance company and (ii) Cash inflow from investing activities in case of a non-finance company.
SOLUTION NIL, No ‘Source’. No ‘Use’ of cash.
SOLUTION No, accountant is not correct.Reason: Dividend paid is not a principal revenue producing activity. It is a financing activity.