Which of the following will be shown in the cash flow statement?

The correct answer is Option (4) → Redemption of preference shares of ₹1,50,000 at 20% premium

A cash flow statement shows only actual movements of cash. Transactions settled by issuing shares involve no cash and are left out.

Option (1) Issue of shares of ₹2,00,000 to Vendor’s from whom assets were purchased — Incorrect. Acquiring assets by issuing shares is a non-cash transaction.

Option (2) Conversion of Debentures into shares of ₹50,000 — Incorrect. Redeeming debentures by issuing shares is a non-cash transaction.

Option (3) Issue of Bonus shares of ₹60,000 by utility securities premium — Incorrect. A bonus issue only transfers an amount from securities premium to share capital; no cash moves.

The redemption in Option (4) is paid in cash (₹1,80,000 with the premium) and is shown under financing activities.