Question

State which of the following would result in inflow/outflow of Cash or Cash Equivalents:

1. Purchase of Goods on Credit
2. Sale of Goods costing ₹ 2,00,000 for ₹ 1,80,000 for cash.
3. Purchase of a fixed asset on long term deferred payment basis.
4. Issue of shares against purchase of fixed asset.
5. Cash received from a Trade Receivable ₹ 48,000, discount allowed ₹ 2,000.
6. Sale of fixed asset (book value ₹ 3,00,000) for ₹ 2,00,000 for cash
7. Old Furniture (book value ₹ 60,000) written off.
8. Bill Receivable endorsed to creditors.
9. Discount of ₹ 5,000 received while making payment to a creditor of ₹ 50,000.
10. Cash deposited into Bank
11. Sale of Marketable Securities for cash
12. Sale of Long-term Investments for cash
13. Conversion of Debentures into Shares
14. Declaration of Dividend.
15. Payment of Dividend
16. Receipt of Interest on Investment
17. Receipt of Dividend
18. Decrease in Cash Credit

Answer 1

Sr. no.	Item	Effect on Cash Flow
i.	Purchase of Goods on Credit.	No effect
ii.	Sale of Goods costing ₹ 2,00,000 for ₹ 1,80,000 for cash.	Inflow ₹ 1,80,000
iii.	Purchase of a fixed asset on long term deferred payment basis.	No effect
iv.	Issue of shares against purchase of fixed asset.	No effect
v.	Cash received from a Trade Receivable ₹ 48,000, discount allowed ₹ 2,000.	Inflow ₹ 48,000
vi	Sale of fixed asset (book value ₹ 3,00,000) for ₹ 2,00,000 for cash.	Inflow ₹ 2,00,000
vii.	Old Furniture (book value ₹ 60,000) written off.	No effect
viii.	Bill Receivable endorsed to creditors.	No effect
ix.	Discount of ₹ 5,000 received while making payment to a creditor of ₹ 50,000.	Outflow ₹ 45,000
x.	Cash deposited into Bank	No effect
xi.	Sale of Marketable Securities for cash	No effect
xii.	Sale of Long-term Investments for cash	Inflow
xiii.	Conversion of Debentures into Shares	No effect
xiv.	Declaration of Dividend	Outflow
xv.	Payment of Dividend	Outflow
xvi.	Receipt of Interest on Investment	Inflow
xvii.	Receipt of Dividend	Inflow
xviii.	Decrease in Cash Credit	Outflow