CBSE Class 12-commerce Answered
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 | 12 Jan, 2019, 10:58: AM
Expert Answer
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.
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 Surabhi Gawade | 14 Jan, 2019, 09:19: AM
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