Effect of bonus shares on cash flow statement

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ganesh nikam (Querist)
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23 October 2012 Balancesheet position was as follows
Share capital in 2005 was 500000 Rs,in 2006 600000 Rs

It has mentioned in adjustment that bonus shares issued.

will cash flow from bonus shares efect in cash flow statement?

Sumit Grover

Sumit Grover (Expert)
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23 October 2012 case I:
If the Net profit(i.e. before appropriations) has been taken in cash from operating activities, then no treatment of bonus.

Case II:
If the amount of P&L is taken from B/s(i.e. difference of opening and closing P&L/ reserves), then the mount of bonus issued(i.e. Rs. 1,00,000) shall be added back while computing Cash flow from operating activities.

ganesh nikam

ganesh nikam (Querist)
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23 October 2012 thank u very much