Doubts

On 1-10-2018, Micro Ltd. issued 20,000, 8% debentures of Rs. 100 each and paid interest of Rs. 80,000 on these debentures on 31st March, 2019. Calculate the cash flow from financing activities for the period ending 31st March, 2019. (C.B.S.E. 2020, Mumbai, Chennai)

SOLUTION Rs. 19,20,000.

Continue ReadingOn 1-10-2018, Micro Ltd. issued 20,000, 8% debentures of Rs. 100 each and paid interest of Rs. 80,000 on these debentures on 31st March, 2019. Calculate the cash flow from financing activities for the period ending 31st March, 2019. (C.B.S.E. 2020, Mumbai, Chennai)

K Ltd., a manufacturing company obtained a loan of Rs. 6,00,000, advanced a loan of Rs. 1.00,000 and purchased machinery for Rs. 5,00,000. Calculate the amount of Cash Flow from financing and investing activities. (C.B.S.E. 2019, M.P.)

SOLUTION Cash Flows from Financing Activities ParticularsDetailsAmount (Rs.)Loan raised6,00,000 Net Cash Inflows from Financing Activities 6,00,000 ParticularsDetailsAmount (Rs.)Loan Advanced(1,00,000) Machinery Purchased(5,00,000) Net cash used in Investing Activities(6,00,000)(6,00,000)

Continue ReadingK Ltd., a manufacturing company obtained a loan of Rs. 6,00,000, advanced a loan of Rs. 1.00,000 and purchased machinery for Rs. 5,00,000. Calculate the amount of Cash Flow from financing and investing activities. (C.B.S.E. 2019, M.P.)

M/s Mevo and Sons; a bamboo pens producing company, purchased a machinery For Rs. 9,00,000. It received dividend of Rs. 70,000 on investment in shares. The company also sold an old machine of the book value of Rs. 79,000 at a loss of Rs. 10,000. Compute Cash flow from Investing Activities. (C B S E. Sample Paper 2019)

SOLUTION Cash flow from Investing Activities InflowsAmount (Rs.)Dividend Received70,000Sale of Old Machinery69,000Outflows Purchase of Machinery(9,00.000)Net Cash Out (low from Investing Activities(7,61,000)

Continue ReadingM/s Mevo and Sons; a bamboo pens producing company, purchased a machinery For Rs. 9,00,000. It received dividend of Rs. 70,000 on investment in shares. The company also sold an old machine of the book value of Rs. 79,000 at a loss of Rs. 10,000. Compute Cash flow from Investing Activities. (C B S E. Sample Paper 2019)