Which of the following is not of Funds? (2024)

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Which of the following is not source of Funds?

A

Issue of share capital

B

Sale of fixed assets

C

Issue of bonus shares

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Solution

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By source of funds we mean that money is coming in the business. In the given question all of them are sources of funds except issue of bonus shares. The company issues bonus shares out of its own reserves and hence there is no money received by the company for such shares. Rest all being sale of fixed assets, issue of share capital and issue of shares for consideration other than cash are a part of sources of funds.

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Q

1

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Issue of fully paid bonus shares.
(ii) Writing off bad debts against the provision for Doubtful Debts.
(iii) Declaration of Final dividend.
(iv) Declaration of interim dividend.
(v) Cash Deposited into Bank.
(vi) Cash withdrawn from Bank.
(vii) Purchase fo Marketable Securities for Cash.

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Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio :

(i) Issue of new shares (Preference/Equity) for Cash.

(ii) Issue of new shares (Preference/Equity) against purchase of fixed asset.

(iii) Buy-back of its own shares by a Company.

(iv) Issue of Debentures for Cash.

(v) Issue of Debentures against purchase of fixed asset.

(vi) Repayment of Long-term Borrowings.

(vii) Conversion of Debentures into Equity Shares/Preference Shares.

(viii) Sale of a fixed asset at par.

(ix) Sale of a fixed asset at profit.

(x) Sale of a fixed asset at loss.

(xi) Purchase of a fixed asset on a credit of 2 months.

(xii) Purchase of a fixed asset on long-term deferred payment basis.

(xiii) Issue of Bonus Shares.

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Q

3

Assuming that Proprietary Ratio is 0.6 : 1, state giving reasons, whether the ratio will increase, decrease or will not change in each one of the following cases:

(i) Issue of new equity shares for cash.

(ii) Issue of equity shares against purchase of machinery.

(iii) Issue of debentures against purchase of machiney.

(iv) Redemption of debentures for cash.

(v) Conversion of debentures into preference shares.

(vi) Buy-back of its own shares by a company.

(vii) Purchase of a fixed asset for cash.

(viii) Purchase of a fixed asset on long-term deferred payment basis.

(ix) Sale of a fixed asset costing Rs. 1,00,000 for Rs. 80,000.

(x) Sale of a fixed asset costing Rs. 2,00,000 for Rs. 2,50,000.

(xi) Issue of Bonus Shares.

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Q

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Shares issued for consideration other than cash means ___


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Shares issued for consideration other than cash can be issued at ___


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Which of the following is not of Funds? (2024)
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