Answer to Question #263426 in Financial Math for moha

Question

The following additional information is available for the year:

 

(a)   Land was purchased by issuing 40,000 12.5% preference shares of Sh20 at par fully paid at a premium of 25%.

(ii)  Half of the redeemable preference shares were redeemed at Sh.110. The premium was paid out of share premium account. For this purpose, 20,000 ordinary shares were issued fully paid for cash at a premium of 10%. The capital redemption reserve was created out of transfer from general reserve.

(iii) A plant which had cost Sh.95,000 was sold for Sh.35,000. Depreciation on the plant at the time of disposal was Sh.78,000.

(iv) 7% Sh1,000,000 debentures were redeemed for Sh.900,000.

 

Required:

A cash flow statement for the year ended 30 June 1994.

Answer 1

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