Q. 3 DK Goel Cash Flow Statement Solutions Class 12 CBSE (2024-25)

Solution of question number 3 of Cash Flow Statement chapter 7 of DK Goel Class 12 CBSE (2024-25).

Classify the following transactions as (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities, and (iv) Cash and Cash Equivalents:

1. Purchase of Shares.
2. Buy-back of Equity Shares.
3. Payment of Share issue expenses
4. Discount allowed to Customers
5. Discount received from Suppliers
6. Increase in balance of Cash Credit.
7. Repayment of Long-term Loan.
8. Repayment of Short-term Loan.
9. Proceeds from Short-term Borrowings
10. Dividend paid on Preference Shares.
11. Short-term deposits in Bank
12. Rent received by a Company whose main business is Real Estate Business.
13. Rent received by a Company whose main business is manufacturing.

Solution:-

Operating Activities:- 4, 5, 12

Investing Activities:- 1, 13

Financing Activities:- 2, 3, 6, 7, 8, 9, 10

Cash and Cash Equivalents: 11