[CBSE] Q. 4 Cash Flow Statement TS Grewal Class 12 2023-24
Are you looking for the solution of Question number 4 of the Cash Flow Statement of TS Grewal Book 2023-24 session?
For each of the following transactions, Calculate the resulting cash flow and state the nature of cash flow, i.e., whether it is Operating, Investing or Financing Activity:
(a) Acquired machinery for ₹ 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b) paid ₹ 2,50,000 to acquire shares in Informa Tech Ltd. and received and dividend of ₹ 50,000 after acquisition.
(c) Sold machinery of original cost of ₹ 2,00,000 with an accumulated depreciation of ₹ 1,60,000 for ₹ 60,000.
[Ans.: (a) ₹ 50,000; Investing Activity – Outflow; (b) ₹ 2,00,000; Investing Activity Activity – Outflow; (c) ₹ 60,000; Investing Activity – Inflow.]
Solution:-
a) ₹ 2,50,000 ✕ 20% = ₹ 50,000 Investing Activity Outflow
b) ₹ 2,50,000 – ₹ 50,000 = ₹ 2,00,00 Investing Activity Outflow
c) ₹ 60,000 Investing Activity Inflow
Here is the list of all Solutions.
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