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State with Reason Whether Deposit of Cash into Bank Will Result into Inflow, Outflow Or No Flow of Cash. - Accountancy

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Question

State with reason whether deposit of cash into Bank will result into inflow, outflow or no flow of cash.

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Solution

Deposit of cash into bank involves no flow of cash. This is because it simply represents the movement between items of cash and cash equivalents.

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2010-2011 (March) Delhi Set 1
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