[DK Goyal] Q 4 Cash Flow Statement Solution CBSE Class 12 (2022-23)

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Solution of Question 4 of Cash Flow statement DK Goyal Class 12 CBSE 2022-23

Question – 4

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

S.N	Items
1	Purchase of Goods on Credit.
2	Sale of Goods costing ₹ 20,000 for ₹ 15,000 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 ₹ 10,000, discount allowed ₹ 1,000.
6	Sale of fixed asset (book value ₹ 25,000) for ₹ 20,000 for cash.
7	Old Furniture (book value ₹ 10,000) written off
8	Bill Receivable endorsed to trade payables.
9	Discount of ₹ 2,000 received while making payment to a creditor of ₹ 20,000.
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

Solution:-

S.N	Effect on Cash or Cash Equivalents	Reason
1	No Effect	Cash is not affected
2	Inflow	Cash is increased by ₹ 15000
3	No Effect	Cash is not affected
4	No Effect	Cash is not affected
5	Inflow	Cash is increased by ₹ 15000
6	Inflow	Cash is increased by ₹ 20000
7	No Effect	Cash is not affected
8	No Effect	Cash is not affected
9	Outflow	Cash is decreased by ₹ 18,000
10	No Effect	Cash includes bank deposits also
11	No Effect	It is merely a conversion of cash equivalents into cash
12	Inflow	cash is increased
13	No Effect	cash is not affected
14	Outflow	cash is decreased since dividend will be paid immediately
15	Outflow	Cash is decreased
16	Inflow	Cash is increased
17	Inflow	Cash is increased