Question : Mention the net amount of 'Source' or 'Use' of cash from the following: 'Issue of shares for Rs.26,00,000 against the purchase of business comprising of Non-Current Assets Rs.24,00,000, Current Assets Rs.4,00,000 and took over Current Liabilities at Rs.2,00,000.
Option 1: Rs 24,00,000
Option 2: Rs 26,00,000
Option 3: Rs 2,00,000
Option 4: Nil, no sources and no use of cash
Answer (1)
22nd Jan, 2024
Correct Answer: Nil, no sources and no use of cash
Solution : Answer = Nil, no sources and no use of cash
There is no flow of cash.
Hence, the correct option is 4.
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