Question : Which of the following transactions will not result into flow of cash?
Option 1: issue of equity shares of Rs. 4,00,000.
Option 2: Purchase of Furniture of Rs. 3,50,000
Option 3: Redemption of 9% Debentures of Rs. 7,00,000.
Option 4: Cash deposited into bank Rs. 30,000
Answer (1)
16th Jan, 2024
Correct Answer: Cash deposited into bank Rs. 30,000
Solution : Answer = C ash deposited into bank Rs. 30,000
Cash deposited into the bank does not result in a cash outflow because it represents cash being transferred from one account (cash in hand) to another (bank account). Therefore, it does not affect the overall cash position and is not considered a cash flow transaction.
Hence, the correct option is 4.
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