Question

Which of the following transactions will result into ‘Flow of Cash’ ?

(a) Deposited ` 10,000 into bank.

(b) Withdrew cash from bank ` 14,500.

(c) Sale of machinery of the book value of ` 74,000 at a loss of ` 9,000.

(d) Converted ` 2,00,000 9% debentures into equity shares.

Answer 1

anyone which one you like you can write answer all those are write please mark me as brain list

Answer 2

We need to find out that out  of the following transactions given which resulted in 'the flow of cash'

• The answer is option C
• Sold machine of book value 74000 at a loss of 9000
• This is the only transaction that involves the flow of cash into the business. this involves the selling a fixed asset to ascertain cash flow
• The other options of deposited and withdrawal of money from the bank are routine business transactions and do not involve the inflow of cash
• The change of debenture into equity is capital restructuring and does not involve an inflow of cash
• The correct answer is option C