AfterBoards Logo
Skip to main contentSkip to solution

CUET Accountancy 2022 PYQs15 July Shift 2. Free, no login required.

Financial Statements

past year questions, CUET Accountancy 2022 15 July Shift 2

Cash Flow

past year questions, Financial Statements, CUET Accountancy 2022 15 July Shift 2

Medium

Hero Ltd, started a new venture of making casual shirts. The directors decided to issue 5,000,00 shares of Rs. 10 each at Rs. 12 each. The following assets were purchased by the company

A building of Rs. 10 lakhs

Furniture of Rs. 7 lakhs

Machinery of Rs. 2 lakhs

The company purchased cloth of Rs. 20 lakhs and paid wages Rs. 5,00,000 to the workers. The Directors also decided to buy 10,000 shares of TATA Ltd. of Rs. 10 each and at the end of the year Tata Ltd. Paid Rs. 10,000 as dividend

Amount of Security Premium Reserve will be shown in

Solution

✅ Correct Option: 3

Securities Premium Reserve arises when shares are issued at a premium and represents a component of funds received from shareholders. Since it arises in connection with the issue of share capital, the related cash inflow is classified as financing activity in the Cash Flow Statement.

More from this set:

Question 41

Security Premium Reserve can be used by Hero Ltd. for

Question 42

Dividend received by Hero Ltd. would be _______ activity

Question 44

Dividend paid by TATA Ltd. is which activity for the company?

Question 45

What is the Cash flow from investing activities?

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question

CUET Accountancy Past Year Questions (Topic-Wise)