Cash flow statement?..help

1. do not have a direct impact on current cash flows its a non cash transaction - should not be considered for the purpose of CFS

2. has to be considered in cash flowsfrom operating activities - adjustment for noncash and non opearating items

Originally posted by : Pawan Chaitanya
	1. do not have a direct impact on current cash flows its a non cash transaction - should not be considered for the purpose of CFS 2. has to be considered in cash flowsfrom operating activities - adjustment for noncash and non opearating items

Pardon me to cross you Pawan...but as far as Point 1 is considered it is not a non cash transaction. As informed a part of preference share was reedemed by issue of equity shares...that's fine...no impact on cash flow (in net)...but for redemption out of profits surely the entry must have been:

Reserve a/c ...Dr

  To Pref. Share Holder a/c

and

Preference Shareholder a/c

    To Cash 

I am not that good at cash flow brother.... please correct me if I m wrong... i was presenting my view over here!!

@ Puneet- if you can give complete details as to how much Prefernce capital was there and how much equity share are issued I can try and provide you with the figure (in case you need to confirm)

Thanks and Regards,

Swapnil