A company redeemed its preference share capital Rs. 2,00,000 for which purpose it raised equity capital of Rs. 1,50,000

A company redeemed its preference share capital Rs. 2,00,000 for which purpose it raised equity capital of Rs.
1,50,000. It also issued bonus shares of the value of Rs. 1,00,000. These transactions will have the net effect on the flow
of funds is follows–
(A) no effect on the flow of funds
(B) net increase in working capital Rs. 50,000
(C) net decrease in working capital Rs. 50,000
(D) None of the above

Anurag Mishra Professor Asked on 14th July 2016 in Commerce.
Add Comment
  • 1 Answer(s)

    Answer: (C) net decrease in working capital Rs. 50,000 

    Anurag Mishra Professor Answered on 14th July 2016.
    Add Comment
  • Your Answer

    By posting your answer, you agree to the privacy policy and terms of service.