Which of the following transactions will not result in flow of cash whether its inflow or outflow?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- Cash deposited into bank ₹45,000.
It is simply a movement between items of cash and cash equivalents. Form of cash is changed into bank balance, nothing else.
OTHER OPTIONS
- Issue of equity shares of ₹1,00,000- Inflow of cash from financing activity.
- Redemption of 10% debentures ₹5,50,000- Outflow of cash from financing activity.
- Purchase of machinery of ₹1,00,000- Outflow of cash from investing activity.