If 6 Pref share capital Rs 2 00 000 were redeemed at a premium of 5 while preparing Cash Flow Statem...........

General Accounting Principles cash flow statement

If 6% Pref. share capital Rs 2,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement its effect on cash flow will be :

Cash used from financing activities Rs 2,12,000

Cash received from financing activities Rs 2,12,000

Cash used (Payment) from financial activities Rs 2,10,000

Cash used (Payment) from financial activities Rs 2,00,000

redemption of 6% preference shares = Rs. 2,00,000 + Rs.10,000*=Rs. 2,10,000

*NOTE= Rs.2,00,000*5%(premium on redemption)=Rs.2,10,000

Cash used (Payment) from financial activities Rs 2,10,000

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