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How will you deal increase in the balance of ‘securities premium’ while preparing a cash flow statement? - Accounts

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Question

How will you deal increase in the balance of ‘securities premium’ while preparing a cash flow statement?

Very Short Answer
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Solution

An increase in the securities premium account reflects the premium received on the issue of shares or debentures. This is considered a cash inflow under ‘financing activities’ in the cash flow statement.

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Chapter 13: Cash Flow Statement - SHORT ANSWER QUESTIONS [Page 13.100]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 13 Cash Flow Statement
SHORT ANSWER QUESTIONS | Q I. 18. | Page 13.100
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