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
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.
Hence, the correct option is 2.
Question : Sold machinery of original cost Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000. Cash flow from investing activities is
Question : If 6% Pref. share capital of Rs. 2,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement its effect on cash flow will be :
Question : If a machine whose original cost is Rs.40,000 having accumulated depreciation Rs.12,000, were sold for Rs.34,000 then while preparing Cash Flow Statement its effect on cash flow will be :
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