Question

Identify out of the following transactions that are shown as Financing Activity:
(i) Repayment of Loan taken.
(ii) Proceeds from Issue of Shares.
(iii) Debentures subscribed by the company
(iv) Redemption of Preference Shares ltbgt (v) Interest paid.
(vi) Dividend paid
(vii) Increase in Bank Overdraft or Cash Credit
(viii) Issue of bonus shares.

Answer 1

Transactions that are shown as Financing Activity are
(i) Repayment of Loan taken
(ii) Proceeds from Issue of Shares.
(iv) Redemption of Preference Shares
(v) Interest paid.
(vi) Dividend paid.
(vii) Increase in Bank Overdraft or Cash Credit