Match the following regarding the cash f

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Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

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.

Options:

A-III, B-II, C-I, D-IV

A-III, B-I, C-II, D-IV

A-I, B-III, C-IV, D-II

A-I, B-III, C-II, D- IV

Correct Answer:

A-III, B-I, C-II, D-IV

Explanation:

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.