In cash flow que no 57 I m not getting the accounting treatment of additional information fron (iv ) to (viii) pls help me in it to solve
Additional information no (v):
This information is provided to determine the amount of interest on investment to be considered in the cash flow statement. Since, the additional investment of Rs.1,00,000 (2,00,000-1,00,000) was purchased on the last day of the current accounting year, such additional investement will not be entitled to any interest for the current accounting year. Therefore, interest on investment for the current year is 1,00,000 x 10% x 12/12 = 10,000
Additional information no (vi):
It is given that preference dividend of Rs.1,00,000 (Rs. 3,00,000 - 2,00,000) were redeemeed on 31st December, 2017 which means that preference shares will be entitled to dividend on the entire amount of Rs.3,00,000 which is the opening balance for the current accounting year. Dividend on the same will be calculated at the rate of 10% on Rs.3,00,000 which comes to Rs.30,000.
Additional information no (vii) and (viii): It is evident from the information that there has been a fresh issue of equity shares of Rs.2,00,000 (5,00,000 - 3,00,000). In information number (viii) it is mentioned that the fresh issue was done on 31st March, 2018 which is the last day of the current accounting year. Therefore, amount of share capital available for use during the accounting year is Rs. 3,00,000 only. If interim dividend is paid on 31st December during the current year it will be paid only on this Rs.3,00,000 at the given rate of 15% which is Rs.45,000.
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