Cash Flow (Quiz2)

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Opening balance and closing balance of machinery (at cost) was Rs. 8,00,000 and Rs. 8,40,000 respectively and depreciation opening and closing balance was Rs. 2,00,000 and Rs. 2,20,000. During the year, a machine costing Rs. 80,000 with its accumulated depreciation of Rs. 48,000 was sold for Rs. 40,000. Calculate purchase value of machinery.

Rs. 1,20,000

Rs.1,30,000

Rs.50,000

Rs.1,25,000

1 out of 10

Dividend paid by a company is classified under finance activity, whether it is non-finance or finance company because

dividend is associated with share capital

dividend is part of profit and loss account

dividend is part of balance sheet

None of the above

2 out of 10

ABC Ltd had opening and closing balance of equity shares of Rs. 20,00,000 and Rs. 30,00,000. Company issued bonus shares in the ratio of 2:1 by capitalising reserve. What will be net cash flow from this transaction?

Rs.20,00,000

Rs.10,00,000

Rs. 30,00,000

No cash flow

3 out of 10

Ram Ltd is a financial company whose equity share capital in the year 2021 was Rs. 28,00,000 which got increased to Rs. 35,00,000 in the year 2022. Calculate the amount of issue of equity share capital.

Rs. (7,00,000)

Rs. 35,00,000

Rs. 28,00,000

None of these

4 out of 10

Insurance Claim received by Albert Co. Ltd. of 5,00,000 for Loss of Machinery due to theft will be recorded in Cash Flow Statement in which of the following manner

Added under Operating Activities as Extraordinary Item and Subtracted from Operating Activities also

Subtracted under Operating Activities as Extraordinary Item and added to Operating Activities also

Added under Operating Activities as Extraordinary Item and Outflow under Investing Activity also.

Subtracted under Operating Activities as Extraordinary Item and Inflow under investing Activities also.

5 out of 10

A company issued 20,000; 9% Debentures of ₹ 100 each at 10% Discount. These debentures were to be redeemed at 15% Premium at the end of 5 yea₹ The balance in Securities Premium Account as on the date of Issue was ₹ 3,70,000. How this transaction will be reflected in Cash Flow Statement?

Added ₹ 1,30,000 under Operating Activities as Loss on Issue of Debentures written off and Inflow of ₹ 20,00,000 under Financing Activities.

Added ₹ 5,00,000 under Operating Activities as Loss on Issue of Debentures written off and Inflow of ₹ 18,00,000 under Financing Activities.

Added ₹ 1,30,000 under Operating Activities as Loss on Issue of Debentures written off and Inflow of ₹ 18,00,000 under Financing Activities.

Added ₹ 5,00,000 under Operating Activities as Loss on Issue of Debentures written off and inflow of ₹ 20,00,000 under Financing Activities.

6 out of 10

Which of the following is not an investing cash flow?

Purchase of marketable securities for ₹ 25,000 cash.

Sale of land for ₹ 28,000 cash

Sale of 2,500 shares (held as investment) for ₹15 each.

Purchase of equipment for ₹ 500 cash.

7 out of 10

While preparing Cash Flow Statement, Commission and Royalty received is shown under:

Financing Activity

Investing Activity

Operating Activity

Both (B) and (C)

8 out of 10

Which of the following transactions will not result in flow of cash?

Purchase of Building of 12,75,000 for cash

Cash deposited into Bank ₹ 12,50,000

Issue of Equity shares of 20,00,000 for cash

Redemption of 8% Debentures of 7,50,000 for cash

9 out of 10

10.

From the following information find out the inflow of Cash by sale of Office equipment’s

31st March, 2022 31st March, 2021

Office Equipment ₹ 2,00,000 ₹ 3,00,000

Additional Information:

Depreciation for the year 2021-22 was Rs. 40,000

Purchase of Office Equipment purchased during the year Rs. 30,000

Part of Office Equipment sold at a profit of Rs. 12,000

1,00,000

1,02,000

90,000

1,12,000

10 out of 10

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