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

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Are you looking for the solutions of Question number 4 Cash flow statement class 12 DK Goyal CBSE Board 2022-23

I have solved all practical problems of Cash Flow Statement chapter DK Goyal CBSE Board class 12 for 2022-23 Session.

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:

1Purchase of Goods on Credit.
2Sale of Goods costing ₹ 20,000 for ₹ 15,000 for cash.
3Purchase of a fixed asset on long-term deferred payment basis.
4Issue of shares against purchase of fixed asset.
5Cash received from a Trade Receivable ₹ 10,000, discount allowed ₹ 1,000.
6Sale of fixed asset (book value ₹ 25,000) for ₹ 20,000 for cash.
7Old Furniture (book value ₹ 10,000) written off
8Bill Receivable endorsed to trade payables.
9Discount of ₹ 2,000 received while making payment to a creditor of ₹ 20,000.
10Cash deposited into Bank
11Sale of Marketable Securities for cash
12Sale of Long term Investments for cash
13Conversion of Debentures into shares
14Declaration of Dividend
15Payment of Dividend
16Receipt of Interest on Investment
17Receipt of Dividend


S.NEffect on Cash or Cash EquivalentsReason
1No EffectCash is not affected
2InflowCash is increased by ₹ 15000
3No EffectCash is not affected
4No EffectCash is not affected
5InflowCash is increased by ₹ 15000
6InflowCash is increased by ₹ 20000
7No EffectCash is not affected
8No EffectCash is not affected
9OutflowCash is decreased by ₹ 18,000
10No EffectCash includes bank deposits also
11No EffectIt is merely a conversion of cash equivalents into cash
12Inflowcash is increased
13No Effectcash is not affected
14Outflowcash is decreased since dividend will be paid immediately
15OutflowCash is decreased
16InflowCash is increased
17InflowCash is increased
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