CUET Accountancy 2022 15 July Shift 2 PYQs - Free Mock Test (No Login)

Hero Ltd. started a new venture of making casual shirts. The directors decided to issue $5,00,000$ shares of $\text{Rs. }10$ each at $\text{Rs. }12$ each. The following assets were purchased by the company:A building of $\text{Rs. }10$ lakhsFurniture of $\text{Rs. }7$ lakhsMachinery of $\text{Rs. }2$ lakhsThe company purchased cloth of $\text{Rs. }20$ lakhs and paid wages $\text{Rs. }5,00,000$ to the workers. The Directors also decided to buy $10,000$ shares of TATA Ltd. of $\text{Rs. }10$ each and at the end of the year Tata Ltd. paid $\text{Rs. }10,000$ as dividend.Security Premium Reserve can be used by Hero Ltd. for:

[Context based on Hero Ltd.] Hero Ltd. issued shares and made investments, including buying $10,000$ shares of TATA Ltd. At the end of the year, TATA Ltd. paid $\text{Rs. }10,000$ as a dividend to Hero Ltd.Dividend received by Hero Ltd. would be classified under which activity?

[Context based on Hero Ltd.] Hero Ltd. decided to issue $5,00,000$ shares of $\text{Rs. }10$ each at a premium of $\text{Rs. }2$ per share (issue price $\text{Rs. }12$).The amount collected as Security Premium Reserve will be shown under which cash flow activity?

[Context based on Hero Ltd.] Dividend paid by TATA Ltd. is categorized under which activity for TATA Ltd. itself?

[Context based on Hero Ltd.] Hero Ltd. undertook the following investment activities:Purchased Building: $\text{Rs. }10,00,000$ Purchased Furniture: $\text{Rs. }7,00,000$ Purchased Machinery: $\text{Rs. }2,00,000$ Purchased shares of TATA Ltd. ($10,000\text{ shares}\times \text{Rs. }10$ face value): $\text{Rs. }1,00,000$ Dividend received from TATA Ltd.: $\text{Rs. }10,000$ What is the net Cash flow from investing activities?