Question

Jalco. Ltd. provided the following information; calculate Net Cash Flow from Financing Activities:

Particular	31st March, 2026 (₹)	31st March, 2025  (₹)
Equity Share Capital	12,00,000	10,00,000
12% Debentures	2,00,000	1,00,000

Additional Information:
1. Interest paid on debentures ₹ 19,000.
2. Dividend paid in the year ₹ 50,000.
3. During the year, XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by capitalising reserve.

Hint: Increase in Equity Share Capital by ₹ 2,00,000 by issue of bonus shares will not be shown under Cash Flow from Financing Activities because cash is not transacted. It is Capitalisation of Reserves.

Answer 1

Cash Flow from Financing Activities
	Particulars	Amount (₹)	Amount (₹)
	Proceeds from Issue of 12% Debentures	1,00,000
	Interest Paid	(19,000)
	Dividend Paid	(50,000)
	Net Cash Flows from Financing Activities		31,000

 Note: Amount of Equity Share Capital has been increased due to the issue of Bonus Shares which does not involve any flow of cash. Therefore, it is not considered in the Financing Activities.