Question

Z Ltd, purchased a building for 40,00,000 from J Lid., by issuing 20,000,9% debentures
of 100 each at 5% discount; 10,000 equity shares of 100 each at 20% premium and the
balance by cheque.
The above transaction will result in :
(A) Cash used in investing activities 31,00,000,
(B) Cash generated from financing activities 31,00,000,
(C) Decrease in cash and cash equivalents 10,00,000,
(D) Cash used in investing activities 9,00,000,
​

Answer 1

Answer:

your answer will be (C) Decrease in cash and cash equivalent 10,00,000

plz mark as brainlist

Answer 2

Answer: (C) Decrease in Cash and Cash Equivalent Rs. 10,00,000

Explanation:

Z ltd. raised Rs. 30,00,000 through Equities and Debentures.

Equities = 10,000 × 100 ⇒ Rs. 10,00,000

Debentures = 20,000 × 100 ⇒ Rs. 20,00,000

But the Building is costing Rs. 40,00,000.

Therefore, The Balance amount needs to be paid through Cash and Cash Equivalents equal to

             ⇒ Rs. 40,00,000 - Rs. 30,00,000

             ⇒ Rs. 10,00,000

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