Question

Purchase of machinery against issue of shares will be shown in which part of the cash flow statement

Answer 1

ineither as it is not a cashflow item but incase they wish to highlight this transaction they can show in both invest ok ng and funding at same monetory value

Answer 2

Investing and financing transactions that do not require the use of cash are excluded from a cash flow statement.

And in this case, the machinery is purchased against the issue of shares, it means there is no dealing in cash.

Thus, it will not be included in the cash flow statement.