Question : Acquired machinery for Rs. 2,50,000 paying 20% down and executing a bond for the balance payable. Cash flow from investing activities is
Option 1: Cash used in investing activities Rs 2,00,000
Option 2: Cash used in investing activities Rs 50,000
Option 3: Cash used in investing activities RS 1,50,000
Option 4: None of the above
Answer (1)
19th Jan, 2024
Correct Answer: Cash used in investing activities Rs 50,000
Solution :
Answer =
Cash used in investing activities Rs 50,000
Cash used in investing activities Rs 50,000
Machinery a/c.....Dr 2,50,000
To bank a/c 50,000
To bonds a/c 2,00,000.
| Cash flow from investing activities | |
| Outflow | |
| Machinery purchased | 50,000 |
Hence, the correct option is 2.
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