Solution

PRE BOARD

Class 12 - Accountancy
Part A:- Accounting for Partnership Firms and Companies
1. (d) Interest on Drawings

Explanation: Interest on Drawings is shown on the credit side of Profit & Loss Appropriation A/c.
2. (d) A is false but R is true.

Explanation: A is false but R is true.

3. (b) Purchase Goodwill and Self Generated Goodwill.

Explanation:
There are two types of goodwill (1) Purchased Goodwill (2) Self Generated Goodwill.
Only purchased goodwill is shown in the books of accounts. Purchased goodwill is the excess amount paid on the purchase of a
running business. Self generated goodwill is that which is build over the year by hard work and dedication.
OR
(c) Technical Knowledge

Explanation: Technical knowledge is not a factor to affecting goodwill.

4. (b) Shareholders’ Funds

Explanation: Share capital is shown in the balance sheet under the heading of Shareholders’ Funds. Under share capital head,
issued share capital, subscribed share capital are shown.
OR
(a) Irredeemable Preference Shares

Explanation: There are two types of preference shares in context to the redemption i.e. Redeemable and Non-redeemable
preference shares. As per the Companies Act, 2013, companies cannot issue Irredeemable Preference Shares. Redeemable
preference shares are those which can be redeemed by the company although the company can issue redeemable preference
shares, equity shares, bonus shares.
5. (b) Personal Account

Explanation: Debenture Application Account is a personal account. It is Representative Personal Account. There are three
types of personal account (i) Natural Personal A/c (ii) Artificial Personal A/c (iii) Representative personal A/c.
6. (d) Realised, Paid

Explanation: At the time of dissolution of a partnership firm, all assets available in the business will be realized (sold out) and
all liabilities will be paid off at an agreed value.
OR
(a) No Entry is required

Explanation: If an asset is taken over by the external liabilities for the full settlement of their due amount, in such a case no
need to record any journal entry. Because Assets and Liabilities both are transferred already in Realisation A/c. Now no Entry
will be passed.
7. (b) Forfeited Amount

Explanation: A company can reissue its shares (forfeited shares) at a discount but discount should not exceed the forfeited
amount i.e. the amount credited to the forfeited shares.
8. (b) Par, Premium and Discount

Explanation: A company can issue its Debentures at par, premium and discount. But shares cannot be issued at discount as per
section 54 of Companies Act, 2013 prohibits the issue of shares at discount.
OR
(b) Fictitious Asset

Explanation: Discount on issue of debentures is treated as a fictitious asset and should be written off against the Statement of
Profit and Loss. As it shows Debit Balance and it is shown on the Assets side of balance sheet.

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 9. (b)
Reconstitution of a partnership firm

Explanation: Reconstitution of a partnership firm

10. (c)
Old ratio

Explanation: Old ratio

11. (b) 10,000

Explanation: Total 10,000 Applications were rejected by the company.

Applications received = 30,000

Full allotment made to only 2000 

So (30,000 - 2,000) remaining 28,000

Pro-rata allotment made to only 18,000

So applications rejected = (28,000 - 18,000) = 10000

12. (b) Purchase of Assets for the business

Explanation: Reconstitution on a partnership means a change in the number of partners through Admission, Retirement or
Death of the partners or change in the ratio of partners. Purchase of Assets will not change the constitution of the partnership. It
can be said the change in partnership.
13. (a) Both At the time of death of a partner and A new partner is admitted

Explanation: Internal goodwill or self-generated or non-purchase goodwill is not required to value at all but it is calculated
when a new partner is admitted, a partner retires, at the time of death of a partner and when there is a change in the existing
profit sharing ratio of the partners. Hence we can say Internal Goodwill is calculated for admission, retirement death and
change in profit sharing ratio.
14. (a) Interest on Partner's Loan Account

Explanation: Entry for interest due on a partner’s loan :

Interest on Partners Loan A/c ... Dr.

To Partner' s Loan A/c

Interest on partners Loan A/c is debited

15. (b) Partners' Current Accounts

Explanation: Balance of Revaluation Account, in case of fixed partner's capitals, is transferred to partner's current account.
OR
(a) New share = old share + acquired gaining share

Explanation: When a partner retires from the firm, a new share for the remaining partners will be calculated as follows:

New share = Old share + acquired gaining share

Which means old ratio as increased by share of retiring partner in gaining ratio
16. (d) Nominal Account

Explanation: Revaluation Account or profit & loss adjustment account is Nominal Account. Revaluation account is opened by
the firm to record the gains and losses arising from the revaluation of assets and reassessment of liabilities at the time of
reconstitution of the firm. Hence, the output is either a profit or a loss, so it is a nominal account.
17. C's Capital Account
Dr. Cr.

Particulars ₹ Particulars ₹

To C's Loan A/c 7,700 By Balance b/d 6,000

By C's Current A/c 1,700

7,700 7,700
C's Current Account
Dr. Cr.

Particulars ₹ Particulars ₹

To Balance b/d 500 By Profit and Loss Suspense A/c 550

To C's Capital A/c (B/f) 1,700 By C's Current A/c 1650

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 2,200 2,200
W/N:
i. Calculation of Average Profit (1st April 2017 to 30th Sep. 2017)

 Profit of previous 3 years 
Average Profit = 3

2,800+2,200+1,600 6,600
=
3
=
3

= 2,200

C's Profit share (For 6 months) = Average Profit × C's Share × 6

12

1 6
= 2, 200 × 2
×
12
= 550
ii. Calculation of Goodwill

Goodwill = Average Profit × 1.5

Goodwill = 2,200 × 1.5 = ₹ 3,300

C's share of Goodwill = 3, 300 × = ₹ 1,650 1

18. Rjan's capital = 3,00,000

Rajani capital = 2,00,000

Total capital Employed = ₹ 5,00,000

100
Capitalised value of profit = Actual profit × Normal Rate of Return

= 1,50,000 × 100

20
= ₹ 7,50,000

Goodwill = Capitalised Value of profit - Capital Employed

= 7,50,000 - 5,00,000

= ₹ 2,50,000
19. Journal
Date Particulars L.F. Debit (₹) Credit (₹)

1. Machinery A/c Dr. 5,00,000

To Vendor’s A/c 5,00,000

(Being machinery Purchased from vendor)

2. Vendor’s A/c Dr. 5,00,000

To Equity Share Capital A/c 4,00,000

To 9% Debenture A/c 1,00,000

(Being amount paid to the vendor by issuing shares and 9% debenture)

20. Revaluation account is a nominal account which is prepared to record the change of assets and reassessment of liabilities. The
profit or loss calculated through this account is transferred to the partners’ capital/current account in their old profit sharing ratio
while Profit and Loss Appropriation Account is prepared for the division of profit among the partners.

Revaluation account is prepared whenever there is change in profit sharing ratio between the partners due to any reason e.g.
Between existing partners, Due to Admission of a new partner, Due to retirement / death of a partner, amalgamation of two
partnership firms etc. to record profit or loss on revaluation. Main concept being whatever happened before change in ratio;
belongs to partners in the old ratio and after change in the new ratio. Profit and Loss Appropriation Account on the other hand is
prepared every year to distribute profit as per the terms of partnership deed.

21. Application ₹1

Allotment ₹2

First Call ₹3

Second Call ₹2

₹ 8 Called-up
Journal Entries
Date Particulars L.F. Dr. (₹) Cr (₹)

Forfeiture of Shares

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 Shares of A

Share Capital A/c Dr. 800

To Share Forfeiture A/c 100

To Calls-In-Arrears A/c 700

(100 shares of ₹ 10 each, ₹ 8 called-up, held by A forfeited for the non-payment of ₹ 7 per share)

Shares of B

Share Capital A/c Dr. 1,600

To Share Forfeiture A/c 600

To Calls-in-Arrears A/c 1,000

(200 shares of ₹ 10 each, ₹ 8 called-up, held by B forfeited for non-payment of ₹ 5 per share)

Shares of C

Share Capital A/c Dr. 2,400

To Share Forfeiture A/c 1,800

To Calls-in-Arrears A/c 600

(300 shares of ₹ 10 each, ₹ 8 called-up held by C forfeited for the non-payment of ₹ 2 per share)

Re-issue of shares

Bank A/c Dr. 6,600

To Share Capital A/c 6,000

To Securities Premium A/c 600

(600 shares of ₹ 10 each re-issued at ₹ 11 per share fully paid-up)

Share Forfeiture A/c Dr. 2,500

To Capital Reserve A/c 2,500

(Share Forfeiture transferred to Capital Reserve)

Working Note:-
Share Forfeiture of 100 shares held by A ₹ 100 Cr.

Share Forfeiture of 200 shares held by B ₹ 600 Cr.

Share Forfeiture of 300 shares held by C ₹ 1,800 Cr.

Total Share Forfeiture credit (at the time of cancellation of shares) ₹ 2,500
Calculation of Capital Reserve

Total Share Forfeiture (at the time of cancellation of shares) = ₹ 2,500 Cr.

Less: Total Share Forfeiture (at the time of re-issue of shares) = (NIL) Dr.

Capital Reserve = ₹ 2,500

22. Journal
Particulars L.F. Amount ₹ Amount ₹

1 Arti’s Capital A/c Dr. 68,000

To Realisation A/c 68,000

(Arti took over stock worth ₹ 80,000 at ₹ 68,000)

2. Karim’s Capital A/c Dr. 40,000

To Realisation A/c 40,000

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 (Karim took over an unrecorded bike of ₹ 40,000)

3. Realisation A/c Dr. 40,000

To Bank A/c 40,000

(Compensation paid to the employees )

4. Realisation A/c Dr. 30,600

To Bank A/c 30,600

(Creditors amounting ₹ 36,000 were settled at a discount of 15%) [36,000 × (85/100)]

5. Arti’s Capital A/c Dr. 18,000

Karim’s Capital A/c Dr. 24,000

To Realisation A/c 42,000

(Loss on Realisation transferred to Partners’ Capital Account)

23. X Ltd.

JOURNAL
Date Particulars L.F. Dr. Cr.

₹ ₹

Bank A/c Dr. 45,00,000

To Equity Share Application & Allotment A/c

45,00,000
(Application and allotment money received on 15,00,000 shares @ ₹ 3 per share)

Equity share Application & Allotment A/c Dr. 45,00,000

To Equity Share Capital A/c 30,00,000

To Calls in Advance A/c

(Application & & Allotment money on 10,00,000 shares transferred to Share Capital 15,00,000
A/c and the balance to Calls in Advance A/c)

Equity Share First Call A/c Dr. 40,00,000

To Equity share Capital A/c

40,00,000
(First Call due on 10,00,000 shares @ ₹ 4 per share)

Bank A/c Dr. 24,75,000

Calls in Advance A/c Dr. 15,00,000

To Equity Share First Call A/c

39,75,000
(First Call received on 9,90,000 shares)
Working Notes:
₹

(A) As Applicants for 15,00,000 shares were allotted 10,00,000 shares

10,00,000
∴ Applicants for 15,000 shares were allotted 15,00,000
× 15, 000

10,000 shares

Excess application and allotment money received on these shares = (15,000 shares - 10,000 shares) × 3 =
₹ 15,000

(B) Amount due on Ist Call on these shares = 10,000 shares × ₹ 4 40,000

Less: Excess received on application and allotment from these shares 15,000

Amount not received on Ist Call 25,000

5 / 12
 (C) Amount received on Ist Call:

Total amount due on Ist Call: 10,00,000 shares × 4 40,00,000

Less: Excess received on application and allotment: 5,00,000 shares × 3 15,00,000

Balance Due 25,00,000

Less: Amount not received on Ist Call 25,000

Net amount received on Ist Call in Cash 24,75,000

24. Revaluation A/c
Particulars ₹ Particulars ₹

To Profit Transferred: By Land & Building 2,10,000

A 1,40,000

B 70,000 2,10,000

2,10,000 2,10,000
Partners' Capital A/c
particulars A B Particulars A B

To A's Capital A/c - 20,000 By Balance b/d 3,00,000 2,00,000

To Reserve A/c 180,000 1,20,000 By Rev. Profit 1,40,000 70,000

To Bank A/c (Bal. fig.) 20,000 By B's Capital A/c 20,000 -

To Balance c/d 3,60,000 2,40,000 By Reserve A/c 1,00,000 50,000

By Bank A/c [Bal. fig.] 60,000

5,60,000 3,80,000 5,60,000 3,80,000

Balance Sheet (Revised)
Liabilities ₹ Assets ₹

Capital Accounts: Land & Building 5,00,000

A 3,60,000 Furniture 80,000

B 2,40,000 6,00,000 Stock 2,40,000

Reserves 3,00,000 Debtors 1,50,000

Creditors 2,00,000 Bank [60,000 + 60,000 + 20,000] 1,00,000

Cash 30,000

11,00,000 11,00,000
Working Note:
i. Old Ratio of A : B = 2 : 1
ii. New Ratio of A : B = 3 : 2
iii. Sac./Gain to A = (2/3) - (3/5) = [(10 - 9)/15] = (1/15) Sac.

to B = [1/3] - (2/5) [(5 - 6)/15] (-1/15) Gain

iv. Share of Goodwill to A = ₹[3,00,000 × (1/15)] = ₹20,000 (Cr)

B = ₹[3,00,000 × (-1/15)] = ₹20,000 (Dr.)

v. Total Capital of New firm = ₹ 6,00,000

New Capital of "A" = ₹[6,00,000 × (3/5)] = ₹3,60,000

"B" = ₹[6,00,000 × (2/5)] = ₹2,40,000

25. IN THE BOOKS OF THE FIRM

JOURNAL ENTRIES
Date Particulars L.F. Dr. Cr.

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 (₹) (₹)

2018
Manoj's Capital A/c Dr. 1,333
April 1

Naveen's Capital A/c Dr. 1,000

Deepak's Capital A/c Dr. 667

To Goodwill A/c 3,000

(Goodwill appearing in the books written off on Deepak's retirement)

Manoj's Capital A/c Dr. 2,667

Naveen's Capital A/c Dr. 2,000

To Deepak's Capital A/c 4,667

(Deepak's share of goodwill adjusted to the accounts of continuing partners in their

gaining ratio i.e., 4:3)

Stock A/c Dr. 1,350

Provision for Doubtful Debts A/c Dr. 450

Plant and Machinery A/c Dr. 900

To Revaluation A/c 2,700

(Increase in the value assets recorded through revaluation account)

Revaluation A/c Dr. 4,500

Deepak's Capital A/c Dr. 15,500

To Motor Car A/c 20,000

(Motor Car taken over by Deepak at a reduced value of ₹ 15,500)

Manoj's Capital A/c Dr. 800

Naveen's Capital A/c Dr. 600

Deepak's Capital A/c Dr. 400

To Revaluation A/c 1,800

(Transfer of loss on revaluation to old partners account in old profit sharing ratio)

Deepak's Capital A/c Dr. 18,100

To Cash A/c 2,000

To Deepak's Loan A/c 16,100

(Payment in cash and the transfer of balance of Deepak's Capital to his loan account)
REVALUATION ACCOUNT
Dr. Cr.

Particulars ₹ Particulars ₹

To Motor Car A/c 4,500 By Stock A/c 1,350

By Provision for Doubtful Debts A/c 450

By Plant & Machinery A/c 900

By Revaluation Loss transferred to:

Manoj's Capital A/c 800

Naveen's Capital A/c 600

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 Deepak's Capital A/c 400 1,800

4,500 4,500
PARTNER'S CAPITAL ACCOUNTS
Dr. Cr.

Manoj Naveen Deepak

Particulars Particulars Manoj (₹) Naveen (₹) Deepak (₹)
(₹) (₹) (₹)

To Goodwill A/c 1,333 1,000 667 By Balance b/d 50,000 39,000 30,000

To Deepak's Capital
2,667 2,000 - By Manoj's Capital A/c 2,667
A/c

To Revaluation A/c 800 600 400 By Naveen's Capital A/c 2,000

To Motor Car A/c 15,000

To Cash A/c 2,000

To Deepak's Loan A/c 16,100

To Balance c/d 45,200 35,400 -

50,000 39,000 34,667 50,000 39,000 34,667

BALANCE SHEET OF THE FIRM (After Deepak's Retirement)

as at 1st April, 2018

Liabilities ₹ Assets ₹

Trade Creditors 7,000 Cash in hand 3,900

Deepak's Loan A/c 16,100 Debtors 19,000

Capital account balances: Less: Provision 950 18,050

Manoj 45,200 Stock 14,850

Naveen 35,400 80,600 Plant and Machinery 18,900

Buildings 48,000

1,03,700 1,03,700
Goodwill amounting to ₹ 3,000 will be written off among old partners in old ratio and Deepak’s share in ₹ 21,000 will be debited
to the accounts of Manoj and Naveen in gaining ratio i.e., 4:3.
26. In the books of M. Ltd.

JOURNAL ENTRIES
Date Particulars L.F. Dr. (₹) Cr.(₹)

2017
April Bank A/c (10,000x110) Dr. 11,00,000
1

To 8% Debenture Application & Allotment A/c

11,00,000
(Application money received)

Apr-
8% Debenture Application & Allotment A/c Dr. 11,00,000
01

To 8% Debentures A/c 10,00,000

To Securities Premium Reserve A/c

1,00,000
(Debentures allotted)

Apr-
Fixed Assets A/c Dr. 2,50,000
01

8 / 12
 To Current Liabilities A/c 40,000

To Vendor’s A/c

2,10,000
(Purchase of assets and liabilities)

Apr-
Vendor’s A/c Dr. 2,10,000
01

To 8% Debentures A/c 2,00,000

To Securities Premium Reserve A/c

2,10,000
(Issue of 2,000 debentures of ₹100 each at 5% premium calculated as follows: 105
10,000
= 2,000 debentures)

Apr-
Bank A/c Dr. 1,00,000
01

To Bank Loan A/c

1,00,000
(Loan taken, secured by the issue of ₹1,00,000 debentures)

Apr-
8% Debentures Suspense A/c Dr. 1,00,000
01

To 8% Debentures A/c

1,00,000
(Issue of debentures as collateral security)
EXTRACT OF BALANCE SHEET OF M LTD.

as at 31st March, 2018

Particulars Note No. 31st March, 2018 31st March, 2017

1. EQUITY AND LIABILITIES: ₹ ₹

Shareholder’s Funds:

Reserve and Surplus 1 1,10,000

Non-Current Liabilities:

Long-term Borrowings 2 13,00,000

Current Liabilities 40,000

II. ASSETS:

Non-Current Assets:

Fixed Assets 2,50,000

Notes to Accounts of balance sheet:
₹

(1) Reserve and Surplus:

Securities Premium Reserve 1,10,000

(2) Long-term Borrowings:

8% Debentures 13,00,000

Less: Debenture Suspense A/c 1,00,000 12,00,000

Bank Loan

1,00,000
(On Collateral Security of 8% Debentures of ₹1,00,000)

13,00,000
Part B :- Analysis of Financial Statements
27. (a) Operating Activities

Explanation: Balance i.e. Surplus in Statement of Profit and Loss is part of operating activities as it is used to find out the net

9 / 12
 profit of the year of a company. It is used to find out the Operating profit of the business.
OR
(b) Bonus shares issued

Explanation: Issue of bonus shares will not affect the preparation of cash flow statement as in this transaction no cash
involved. There is no cash inflow or outflow of cash.
28. (a) External Analysis

Explanation: Analysis conducted by the Investors and Creditors is known as External Analysis because they both are treated
as outsiders.
29. (d) No these are investing activities

Explanation: Purchase of fixed assets will be classified as investing activity for both companies (finance and non-finance
company). As fixed Assets are Non-Current Investment for company.
OR
(d) Investing activities

Explanation: Purchase and Sales of Shares by a manufacturing company comes under Investing activities as an investment in
other's company. Purchase or sale of share is the purchase or sale of Investment.
30. (a) All of these

Explanation: All the options are correct.

31. EXTRACT OF BALANCE SHEET OF VIKAS LTD.

As at ..................
Current year
Previous year

Particulars Note No.

₹ ₹

I. EQUITY AND LIABILITIES :

Shareholder’s Funds

(a) Share Capital 1 28,00,000

Notes to Accounts :
Particulars ₹

(1) Share Capital:

Authorised share Capital:

4,00,000 Equity Shares of ₹ 10 each 40,00,000

Issued share Capital:

3,00,000 Equity Shares of ₹ 10 each 30,00,000

Subscribed & Fully Paid capital:

2,80,000 Equity Shares of ₹ 10 each 28,00,000

₹10,000
32. Gross Profit Ratio =  Gross Profit 
× 100 = × 100 = 10%

 Revenue from Operations  ₹1,00,000

Revenue from Operations, i.e., Net Sales = Cash Sales + Credit Sales

= ₹ 25,000 + ₹ 25,000 × 3/1 = ₹ 25,000 + ₹ 75,000

= ₹ 1,00,000

Net Purchases = Cash Purchases + Credit Purchases - Returns Outward

= ₹ 15,000 + ₹ 60,000 - ₹ 2,000 = ₹ 73,000

Cost of Revenue from Operations (Cost of Goods Sold)

= Purchases + Opening Inventory + Direct Expenses - Closing Inventory

= Purchases + Decrease in Inventory + Direct Expenses (Carriage Inwards + Wages)

= ₹ 73,000 + ₹ 10,000 + ₹ 7,000 (i.e., ₹ 2,000 + ₹ 5,000) = ₹ 90,000

Gross Profit = Revenue from Operations - Cost of Revenue from Operations

= ₹ 1,00,000 - ₹ 90,000 = ₹ 10,000

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  Cost of Goods Sold + Operating Expenses 
33. (i) Operating Ratio =  Net Sales 
× 100

13,20,000+2,20,000
=
22,00,000
× 100 = 70%

Working Note :

Credit Sales = 10,00,000 x 120% = Rs. 12,00,000

Net Sales = 10,00,000 + 12,00,000 = Rs. 22,00,000

Gross Profit = 22,00,000 x 40% = Rs. 8,80,000

Cost of Goods Sold = Net Sales - Gross Profit

= 22,00,000 - 8,80,000 = Rs. 13,20,000

Operating Expenses = 22,00,000 x 10% = Rs. 2,20,000

(ii) Stock Turnover Ratio =

 Cost of Goods Sold 

 Average Stock 

13,20,000
=
1,60,000
= 8.25 times

Working Note :

 Opening Stock + Closing Stock 

Average Stock = 2

1,50,000+(1,50,000+20,000)
= 2
= Rs. 1,60,000
 Equity or Shareholder's Funds 
(iii) Proprietary Ratio =  Total Assets 

6,00,000
=
8,00,000
= 0.75: 1

Working Note :

Total Assets = 3,00,000 + 5,00,000 = Rs. 8,00,000

OR
 Credit Revenue from Operations (Credit Sales) 
Trade Receivables Turnover Ratio =  Average Trade Receivables 

2,00,000
=
1

(30,000+50,000)
2

2,00,000
=
40,000
= 5 times

Effect on Trade Receivables Turnover Ratio:

Reasons

Collection from trade receivables will

decrease the closing trade

(i) Increase receivables which will result in increase

in trade receivables turnover ratio:

2,00,000 2,00,000

1
=
35,000
= 5.71 times.
(30,000+40,000)
2

Credit Revenue from Operations will

result in equal increase in credit Revenue
from Operations and closing trade
(ii) Decrease receivables which will result in decrease
in trade receivables turnover ratio as
follows:

2,20,000 2,20,000

1
=
50,000
= 4.4 times.
(30,000+70,000)
2

Revenue from Operations return will

result in equal decrease in credit Revenue
from Operations and closing trade
(iii) Increase receivables which will result in increase
in trade receivables turnover ratio as
follows:

1,96,000 1,96,000

1
=
38,000
= 5.16 times.
(30,000+46,000)
2

Neither the credit Revenue from

(iv) Not Alter Operations nor the trade receivables are
affected.

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34. i. CASH FLOWS FROM OPERATING ACTIVITIES OF RAJESHWAR LTD.
₹

Net Profit before Tax (Note 1) 3,12,000

Adjustments for non-cash and non-operating items:

Add: Premium paid on Redemption of Preference Shares 5,000

Interest paid on Debentures 28,000

Interest on Bank Overdraft 20,000

Net Cash Flows from Operating Activities 3,65,000

Note: 1
Calculation of Net Profit before Tax : ₹

Profit & Loss Balance on 31st March, 2018 5,00,000

Less: Profit & Loss Balance on 31 st March, 2017 3,50,000

1,50,000

Add: Dividend paid on Preference Shares (18% on ₹ 4,00,000) 72,000

Proposed Dividend paid on Equity Shares (15% on ₹ 6,00,000) 90,000

Net profit before tax and extraordinary items 3,12,000

ii. CASH FLOWS FROM FINANCING ACTIVITIES OF RAJESHWAR LTD.
₹

Proceeds from issue of Equity Share Capital (₹ 4,00,000 + Securities Premium Reserve ₹ 1,60,000 -
5,40,000
Underwriting Commission ₹ 20,000)

Redemption of Preference Shares (₹ 1,00,000 + ₹ 5,000) (1,05,000)

Proceeds from issue of Debentures (₹ 50,000 - ₹ 1,000) 49,000

Increase in Bank Overdraft 50,000

Interest on Bank Overdraft (20,000)

Dividend paid on Preference Shares (18% on ₹ 4,00,000) (72,000)

Proposed Dividend paid on Equity Shares for 31st March 2017 (15% on ₹ 6,00,000) (90,000)

Interest paid on Debentures (14% on ₹ 2,00,000) (28,000)

Net Cash flow from Financing Activities 3,24,000

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