Page 152 - F1 Integrated Workbook STUDENT 2018
P. 152

Chapter 9




               3.12 Financing activities

               Cash inflows may include:

                    proceeds from the issue of shares and

                    proceeds from the issue of loans/debentures

               Cash outflows may include:


                    repayments of loans/debentures and

                    dividends paid

               The proceeds from share issues will be calculated by looking at the movement on the
               share capital and share premium accounts in the SOFP.

               The proceeds/repayment of loans/debentures will be calculated by looking at the
               movement on the loan/debenture accounts in the SOFP.

               The dividend payment can either be found in the SOCIE or by looking at the
               movement on the retained earnings account as follows:

                                                  Retained earnings
               Dividend paid (Bal fig)                   X    Bal b/d                              X
               Bal c/d (SOFP)                            X    Profit or loss for the year          X



                                                        –––                                       –––
                                                         X                                         X
                                                        –––                                       –––































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