Question

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Sale of a fixed asset (book value Rs. 15,000) at a loss of Rs. 5,000
(ii) Cash received from Trade Receivables Rs. 9,000 and allowed discount Rs. 1,000.
(iii) Cash paid to Trade Payables.
(iv) Shares issued for Cash.
(v) Buy- back of Equity Shares.

Answer 1

Statement Showing the efect of transactions on Cash or Cash Equivalents.
$$\begin{array}{ccc}\text{Transaction}& \text{Effect on Cash or Cash Equivalents}& \text{Reason}\\ \left(i\right)& \text{Inflow}& \text{Cash is increased by Rs. 10,000}\\ \left(ii\right)& \text{Inflow}& \text{Cash is increased by Rs. 9,000}\\ \left(iii\right)& \text{Outflow}& \text{Cash is decreased.}\\ \left(iv\right)& \text{Inflow}& \text{Cash is increased.}\\ \left(v\right)& \text{Outflow}& \text{Cash is decreased.}\end{array}$$