3 :- State which of the following would result in inflow or outflow or no flow of Cash and Cash Equivalents:
(a) Sale of Fixed Assets, Book Value Rs 1,00,000 at a profit of Rs 10,000
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for Rs 10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from Bank.
(g) Payment of Interim Dividend.
Solution :-
(a) Sale of Fixed Assets, Book Value Rs 1,00,000 at a profit of Rs 10,000 would result in inflow of Cash and Cash Equivalents.
(b) Sale of goods against cash would result in inflow of Cash and Cash Equivalents.
(c) Purchase of machinery for cash would result in outflow of Cash and Cash Equivalents.
(d) Purchase of Land and Building for Rs 10,00,000. Consideration paid by issue of debentures would result in no flow of Cash and Cash Equivalents.
(e) Issued fully paid Bonus Shares would result in no flow of Cash and Cash Equivalents.
(f) Cash withdrawn from Bank would result in no flow of Cash and Cash Equivalents.
(g) Payment of Interim Dividend would result in outflow of Cash and Cash Equivalents.