Practicing Success
What will be the net effect of the transaction ' Discount received of ₹5000 while making a payment of ₹50000 to a creditor' while making the cash flow statement? |
Cash inflow Cash outflow No effect None of these |
Cash outflow |
Payment of creditor is done by the company for ₹45000 after receiving a discount of ₹5000. So, it is a cash outflow. |