Question

what is treatment of

PREMIUM ON REDEMPTION OF DEBENTURES

PREMIUM ON ISSUE OF DEBENTURES

PREMIUM ON REDEMPTION OF SHARES

PREMIUM ON ISSUE OF SHARES

in cash flow if given in adjustments.....

how are theses to appear in operating activities???

Answer 1

debenture means acknowladgement of debt issued under common seal of the company

Answer 2

PREMIUM ON REDEMPTION OF DEBENTURES/ PREFERENCE SHARES HAVE DUAL TREATMENT. IN FINANCING ACTIVITIES (LESS). IN OPERATING ACTIVITIES (PART-2) (ADD). AND ONE MORE THING, EQUITY SHARES CAN NOT BE REDEEMED, THEY CAN BE ONLY, BUYBACK. ONLY PREFERENCE SHARES AND DEBENTURES ARE REDEEMED.