Question

From the following information, calculate Cash Flows from Financing Activities :

Particulars	31-03-2024 (₹)	31-03-2023 (₹)
Equity Share Capital	12,00,000	8,00,000
11% Debentures	3,00,000	4,00,000
Securities Premium	1,40,000	1,00,000

Additional Information :
Interest paid on debentures amounted to ₹ 40,000.

Answer 1

Cash Inflows:
Equity Share Capital raised = ₹ 12,00,000 – ₹ 8,00,000 = ₹ 4,00,000
Securities Premium = ₹ 40,000 Cash Outflows:
Redemption of Debentures = ₹ 1,00,000
Interest paid = ₹ 40,000 Net Cash Flow from Financing Activities:
= ₹ 4,00,000 + ₹ 40,000 – ₹ 1,00,000 – ₹ 40,000
= ₹ 3,00,000