statement of cash flows

my calculation was: proceeds of Shares(2000-1000+500)=$1500 inflow loan stock(750-1000)=$250 outflow the bonus issue will not feature the statement of cash flow. so, cash flow $1250 inflow. am I correct sir?please explain

I don't know where you found this question (I will be grateful if you could let me know on here which book it was in). However, assuming that you have copied it correctly it is very bad. The reason is because of the bonus issue. Although it is not a cash flow, it is part of the reason for the share capital increasing. There is obviously also a new issue of shares during the year. If the bonus issue was made after the new issue, then share capital increases and share premium reduces, but the end result is that you answer of 1,250 would be correct. If the bonus issue was before the new issue, then share capital increases and retained earning reduce (because there was no share premium account at the start of the year). In this case the cash flow would be $1200 (assuming the figures are all in thousands). Again, if you have typed it all correctly, then it is a very poor question and the printed answer is wrong. If you tell me where you found it then I will see if I can see the original question and then I can answer for certain :-)

its in BPP text.in my book it is in the chapter-22, quick quiz-6,page-387

Sorry - but I do not have the BPP Study Text (only the Revision Kit).