Mention with reason whether the following would result in inflow, outflow, or no flow of cash: Issue of fully paid bonus shares. Cash withdrawn from bank.

Transaction Cash flowtype Reason (i) Issue of fully paid bonus shares No flow of cash Bonus shares are issued from reserves; it is a capital restructuring with no cash involved. (ii) Cash withdrawn from bank No flow of cash It is a movement within cash and cash equivalents. No net cash change.

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CISCEISC (Commerce) Class 12

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Mention with reason whether the following would result in inflow, outflow, or no flow of cash: (i) Issue of fully paid bonus shares. (ii) Cash withdrawn from bank. - Accounts

Question

Mention with reason whether the following would result in inflow, outflow, or no flow of cash:

Issue of fully paid bonus shares.
Cash withdrawn from bank.

Short Answer

Solution

Transaction	Cash flow type	Reason
(i) Issue of fully paid bonus shares	No flow of cash	Bonus shares are issued from reserves; it is a capital restructuring with no cash involved.
(ii) Cash withdrawn from bank	No flow of cash	It is a movement within cash and cash equivalents. No net cash change.