Match the following regarding the cash flow statement.
| LIST 1 | LIST 2 |
| A) Purchase of furniture of ₹2,00,000 by issue of 20,000 shares of ₹10 each |
I) Inflow of cash of ₹1,50,000 |
| B) Shares are issued for cash ₹1,50,000 | II) Outflow of cash of ₹9,700 |
| C) Purchase of own debentures of ₹10,000 at 97% | III) No flow of cash |
| D) Sale of goods ₹10,000 for a loss of ₹300 | IV) Inflow of cash for ₹9,700 |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- A-III, B-I, C-II, D-IV.
| LIST 1 | LIST 2 |
| A) Purchase of furniture of ₹2,00,000 by issue of 20,000 shares of ₹10 each |
III) No flow of cash |
| B) Shares are issued for cash ₹1,50,000 | I) Inflow of cash of ₹1,50,000 |
| C) Purchase of own debentures of ₹10,000 at 97% | II) Outflow of cash of ₹9,700 |
| D) Sale of goods ₹10,000 for a loss of ₹300 | IV) Inflow of cash for ₹9,700 |
A) Purchase of furniture of ₹2,00,000 by issue of 20000 shares of ₹10 each- No flow of cash as furniture come and shares are issued.
B) Shares are issued for cash ₹1,50,000- Cash received by the company means inflow of cash for ₹1,50,000
C) Purchase of own debentures of ₹10,000 at 97%- Debentures are purchased at 97% means 9,700 so it is outflow of cash for ₹9,700
D) Sale of goods ₹10,000 for a loss of ₹300- Goods are sold at loss of ₹300 means at 9,700. So inflow of ₹9,700 to the company.