Q. 2 DK Goel Cash Flow Statement Solutions Class 12 CBSE (2024-25)

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Solution of question number 2 of Cash Flow Statement chapter 7 of DK Goel Class 12 CBSE (2024-25).

Classify the following activities into (i) Operating Activities, (ii) Investing Activities, and (iii) Financing Activities in case of (a) a Financial Enterprise, and (b) a Manufacturing Enterprise :

  1. Purchase of Shares of a Company.
  2. Proceeds from sale of Shares.
  3. Brokerage paid on purchase of shares
  4. Loans and Advances made to third parties
  5. Dividend and interest received on Securities
  6. Salary paid to employees.
  7. Interest paid on debentures.
  8. Dividend paid to Shareholders.

Solution:-

In Case of Financial Enterprise:

Transactions 1 to 7 : Operating Activities

Transactions 8 : Financing Activities

In Case of Non-Financial Enterprise :

Transaction 1 to 5 : Investing Activities

Transaction 6 : Operating Activities

Transaction 7 & 8 : Financing Activities

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