A) Purchase of inventory for cash - Cash is given for purchase of goods. So, it is outflow
B) Purchase of goods on credit- Goods are purchased on credit means creditors increased, no effect on cash.
C) Sale of goods at profit of ₹3000 for cash- Goods are sold at cash means cash comes to business. So, it is inflow of cash.
D) Sale of goods on credit- Goods sold on credit means debtors are increased, no effect on cash.
E) Purchase of a building by issue of shares- Building is purchased and shares are issued so there is no transaction related to cash.
F) Sale of a fixed asset at a loss of ₹10000- Fixed asset is sold at loss. It is inflow of cash because cash came to business whether it is less than the book value of the fixed asset.
G) Cash received from debtors after allowing discount of ₹1500- Cash is received from debtors whether discount is given means less amount is received, So, it is inflow of cash.
H) Cash paid to creditors- Cash is paid to suppliers means cash go out from the business means it is outflow of cash.
I) Shares issued for cash- Shares are issued at cash means inflow of cash in the business.
J) Buy-back of equity shares- Buy back of shares means shares are taken back by the company in cash means cash outflow from the business.
K) Issue of fully paid bonus shares- Bonus shares are issued from reserves and surplus to the equity shareholders. It is only capitalisation of profits so there is no flow of cash. |
