If 6% Pref. share capital ?2,00,000 were redeemed at a premium of 5%, while preparing the Cash Flow Statement its effect on cash flow will be:
Capital ?2,00,000
Premium = 5% of 2,00,000
Premium = 10,000
Cash Outflow = Capital + Premium
Cash outflow = 2,00,000 + 10,000
cash used (payment) from financial activities = ?2,10,00