What are the two methods which can he employed lo calculate net Cash flows from operating activities? Post category:Accountancy Reading time:1 mins read SOLUTION Direct method and Indirect method. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostGive any two examples of cash inflows from operating activities other than cash receipts from sale of goods and rendering of services. (C.B.S.E. Sample Paper. 2018). Next PostHow are various activities classified as per AS-3 (Revised) while preparing Cash Flow’ Statement? You Might Also Like Competent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of Rs. 10 each, payable Rs. 5 as per application (including Rs. 2 as premium), Rs. 4 as per allotment and the balance towards first and final call. Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment. Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money. All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for Rs. 9 per share. You are required to set out the Journal entries and the relevant entries in the Cash Book. July 15, 2022 State one transaction which results in an increase in ‘Liquid Ratio’ and no change in ‘Current Ratio’. October 3, 2022 State with reason whether ‘Old furniture written off would result into inflow / outflow or no flow of cash. October 6, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Competent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of Rs. 10 each, payable Rs. 5 as per application (including Rs. 2 as premium), Rs. 4 as per allotment and the balance towards first and final call. Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment. Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money. All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for Rs. 9 per share. You are required to set out the Journal entries and the relevant entries in the Cash Book. July 15, 2022
State one transaction which results in an increase in ‘Liquid Ratio’ and no change in ‘Current Ratio’. October 3, 2022
State with reason whether ‘Old furniture written off would result into inflow / outflow or no flow of cash. October 6, 2022
