The following details of P Ltd. pertain to the year ended 31st March 20X2: Paid lease liabilities (principal portion): ₹ 3,00,000 The information on…

CA Final · Financial Reporting · RTP · November 2026
The following details of P Ltd. pertain to the year ended 31st March 20X2: Paid lease liabilities (principal portion): ₹ 3,00,000 The information on equity share capital and securities premium account is as under: 1/4/20X1 31/3/20X2 Equity share capital (par value ₹ 1) 2,50,000 5,00,000 Securities premium 50,000 50,000 On 10 October 20X1, a bonus issue of 1 share for every 5 ordinary shares was made utilising the securities premium account. The remainder of the increase in equity shares was due to an issue of shares for cash on 21st November 20X1. From the above information, show the cash flows from financing activities to be shown in the statement of Cash flows for the year ended 31st March 20X2.

Suggested Answer and Working Notes:

Extract of Statement of cashflows – showing cash flow from financing activities Particulars ₹ Proceeds from issue of equity share capital (2,00,000 + 50,000) (W.N.1 and W.N.2) 2,50,000 Payment to lease liabilities (3,00,000) Net cash outflow from financing activities (50,000) Working Notes: 1. Equity Share Capital Account Particulars ₹ Particulars ₹ To Balance c/d 5,00,000 By Balance b/d 2,50,000 By Bonus issue (1/5 × 2,50,000) 50,000 By Bank (Issue of shares on 21st November (bal. fig.) 2,00,000 Total 5,00,000 Total 5,00,000 2. Securities Premium Account Particulars ₹ Particulars ₹ To Bonus issue (1/5 × 2,50,000) 50,000 By Balance b/d 50,000 To Balance c/d 50,000 By Bank (Premium received on issue of shares for cash on 21st November (bal. fig.) 50,000 Total 1,00,000 Total 1,00,000

Topics: Ind AS 7

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