Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:

(a) Cash Sale of Goods (b) Cash Received against Revenue from Services rendered

(c) Cash Purchase of Goods (d) Cash Paid against Services Taken

(e) Patents Purchased (f) Marketable Securities

(g) Bank Overdraft (h) Proceeds from Issue of Debentures

(i) Purchase of Shares (j) Repayment of Long-term Loan

(k) Commission Received (l) Redemption of Debentures

(m) Interest on Debentures (n) Interest on Investments

(o) Income Tax Paid (p) Income Tax Paid on Gain of Sale of Asset

(q) Cash Received from Debtors (r) Cash Paid to Creditors.

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Solution

OPERATING ACTIVITY

INVESTING ACTIVITY

FINANCING ACTIVITY

CASH AND CASH EQUIVALENTS

a. Cash Sale of Goods

e. Patents Purchased

g. Bank Overdraft

f. Marketable Securities

b. Cash Received against Revenue from Services rendered

i. Purchase of Shares

h. Proceeds from Issue of Debentures

c. Cash Purchase of Goods

n. Interest on Investments

j. Repayment of Long-term Loan

d. Cash paid against Services Taken

p. Income Tax paid on Gain on Sale of Asset

l. Redemption of Debentures

k. Commission Received

m. Interest on Debentures

o. Income Tax paid

q. Cash Received from Debtors

r. Cash Paid to Creditors

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Similar questions

Q. Classify the Following Activities into cash Flows under (A) Operating (B) Investing (C) Financing:
(i) Cash Sales of Goods.
(ii) Income Tax paid.
(iii) Dividend Paid.
(iv) Purchase of Fixed Assets.
(v) Redemption of Debentures.
(vi) Royalty Received.
(vii) Cash paid to the Suppliers
(viii) Rental Income.

Classify the following into (i) Operating Acivities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash Equivalents while preparing a Cash Flow Statement:
1. Cash Sales
2. Cash Received from Trade Receivables
3. Purchase of Building
4. Sale of Building
5. Issue of Share Capital or Debentures
6. Buy- back of Equity Shares
7. Dividend Paid
8. Interest paid on Debentures or Long - term Loans by (a) Finance Company (b) Non- Finance Company
9. Cash Purchases
10. Cash paid to trade payables
11. Redemption of Debentures and Preference Shares
12. Repayment of Long - term Loan
13. Office Expenses
14. Selling and Distribution Expenses
15. Manufacturing Expenses
16. Purchase of Goodwill
17. Sale of Patent
18. Purchase of Investments
19. Sale of Investments by (a) Finance Company (b) Non- Finance Company
20. Commission and Royalty received
21. Interest received on Investments by (a) Finance company (b) Non Finance company
22. Dividend received on Shares by (a) Finance Company (b) Non - Finance company
23. Rent Paid
24. Rent received if (a) Company's main business is property business (b) Other business
25. Income Tax Paid
26. Income Tax Refund received
27. Bank Balance
28. Short- term Deposits in Bank
29. Investment in Short - term or Marketable Securities

Q. State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:
(a) Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹10,000.
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for ₹10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from bank.
(g) Payment of Interim Dividend.
(h) Proposed Dividend.

Q. Interest paid on debentures and long-term loans and advances will result in cash from financing activities.

Q. Interest received on debentures held as an investment is a cash inflow from activity.

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(a) Cash Sale of Goods	(b) Cash Received against Revenue from Services rendered
(c) Cash Purchase of Goods	(d) Cash Paid against Services Taken
(e) Patents Purchased	(f) Marketable Securities
(g) Bank Overdraft	(h) Proceeds from Issue of Debentures
(i) Purchase of Shares	(j) Repayment of Long-term Loan
(k) Commission Received	(l) Redemption of Debentures
(m) Interest on Debentures	(n) Interest on Investments
(o) Income Tax Paid	(p) Income Tax Paid on Gain of Sale of Asset
(q) Cash Received from Debtors	(r) Cash Paid to Creditors.

OPERATING ACTIVITY	INVESTING ACTIVITY	FINANCING ACTIVITY	CASH AND CASH EQUIVALENTS
a. Cash Sale of Goods	e. Patents Purchased	g. Bank Overdraft	f. Marketable Securities
b. Cash Received against Revenue from Services rendered	i. Purchase of Shares	h. Proceeds from Issue of Debentures
c. Cash Purchase of Goods	n. Interest on Investments	j. Repayment of Long-term Loan
d. Cash paid against Services Taken	p. Income Tax paid on Gain on Sale of Asset	l. Redemption of Debentures
k. Commission Received		m. Interest on Debentures
o. Income Tax paid
q. Cash Received from Debtors
r. Cash Paid to Creditors