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Question
State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:
(a) Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹10,000.
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for ₹10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from bank.
(g) Payment of Interim Dividend.
(h) Proposed Dividend.
Solution
| Inflow | Outflow | No Flow |
| a. Sale of Fixed Assets | c. Purchase of Machinery for cash | d. Purchase of Land and Building. Consideration paid by issue of Debentures. |
| b. Sale of goods against cash | g. Payment of Interim Dividend | e. Issued fully paid bonus shares |
| f. Cash withdrawn from Bank | ||
| h. Proposed Dividend |
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From the following information find out the inflow of Cash by sale of Office equipment
| 31st March, 2022 | 31st March, 2021 | |
| Office Equipment | ₹ 2,00,000 | ₹ 3,00,000 |
Additional Information:
Depreciation for the year 2021-22 was Rs. 40,000
Purchase of Office Equipment purchased during the year Rs. 30,000
Part of Office Equipment sold at a profit of Rs. 12,000
Which of the following transactions will result into flow of cash?
Statement I: Sale of Marketable Securities will result in no flow of Cash.
Statement II: Debentures issued as collateral security will result in inflow of cash.
