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Why premium on redemption is considered in operating activities under indirect method as premium will not written p&l account

Screenshot_2021-11-06-14-34-34-41_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Sairam Reddy

CA Final

★ 10K+

06-Nov-21 14:38

431

Answers (3)

Those are addedback to net profit as those are related to financial activities

Seetha Ram

CA Final

★ 12K+

06-Nov-21 14:43

Seetha Ram

Those are addedback to net profit as those are related to financial activities

Yes added back when they will appear on p&l account but premium does not form part of p&l account know,then how it will be added back

Thread Starter

Sairam Reddy

CA Final

★ 10K+

06-Nov-21 14:48

Thread Starter

Sairam Reddy

Yes added back when they will appear on p&l account but premium does not form part of p&l account know,then how it will be added back

Premium is a charge to P&L

Sudha Reddy

CA Final

★ 20K+

09-Nov-21 14:23