Cash Flow Statement

I think the outflow of Rs.120000-16000=104000 is shown in Financing Activites...

Bcoz it it relating to Financing Activity...

I think the outflow of Rs.120000-16000=104000 is shown in Financing Activites...

Bcoz it it relating to Financing Activity...

yes the cash outflow to be shown in the financing activities is Rs. 104000. the unclaimed dividend is a current liability. but it does not arise from the operating activities like sundry creditors or bills payable. hence it should  not be treated in cash flow form operating activities.

it can be explained also like that proposed dividend is shown in the liability side. now when the dividend is paid that liability is gone. if the dividend remains unpaid or uncalimed that amount of cash flow does not occur and that ammount of liability(in this case Rs. 16000) exist in the balance sheet.

Thanks a lot sudipto I am clear now

what treatment should be given in cash flow when asstes are issued in exchange of bonds

for example-- purchased plant assets for rs 120000 and issued rs 100000 of bonds at face value in exchange of plant assets

Kindly Send Format for Board Resolution for Signature Authorization for bank transactions etc. for Private Limited Company

If anyone can send a site name where this formats are freely available and easy to download would be more nice

Thnx

Reply ASAP

When assets are acquired in exchange of Bond there is no outflow of cash. Hence, it will not be shoen in Cash flow statement.