Which of the following will be shown in the cash flow statement?

Redemption of preference shares of ₹1,50,000 at 20% premium

The correct answer is option 4- Redemption of preference shares of ₹1,50,000 at 20% premium.

Redemption of preference shares of ₹1,50,000 at a 20% premium: This involves a cash outflow (since preference shares are being redeemed at a premium). It will be shown under financing activities in the cash flow statement, specifically as a cash outflow.

OTHER OPTIONS

• Issue of shares of ₹2,00,000 to vendors from whom assets were purchased: This involves the issuance of shares in exchange for assets. It is a non-cash transaction, so it will not appear in the cash flow statement.

• Conversion of Debentures into shares of ₹50,000: This is a non-cash transaction (debentures are being converted into equity shares), so it will not be shown in the cash flow statement.

• Issue of Bonus shares of ₹60,000 by utilizing securities premium: This is also a non-cash transaction (bonus shares are issued without cash inflow). Like the other non-cash items, it will not be shown in the cash flow statement.