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Please guide me how deal with provision of premium of debenture is given the question so we directly deal by taking Difference and deducted from financing activity.? 

Asked by tanvisawhney3 12th January 2019, 10:58 AM
Answered by Expert
Amount of provision for premium on debentures is a capital expense and therefore, it should be added back to the net profits in order to compute the amount of Cash Flow from Operating Activities.
Such premium paid on debentures is a Cash Flow from Financing Activity and therefore, it is subtracted under the head Cash Flow from Financing Activity.
Answered by Expert 14th January 2019, 9:19 AM
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