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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
State which of the following would result in inflow, outflow, or no flow of Cash and Cash Equivalents: (a) Sale of fixed assets, book value ₹1,00,000, at a profit of ₹10,000; (b) Sale of goods against cash; (c) Purchase of machinery for cash; (d) Purchase of land and building for ₹10,00,000, consideration paid by issue of debentures; (e) Issued fully paid bonus shares; (f) Cash withdrawn from bank; (g) Payment of interim dividend.
| Inflow | Outflow | No Flow |
|---|---|---|
| a. Sale of Fixed Assets | c. Purchase of Machinery for Cash | d. Purchase of Land and Building, consideration paid by issue of debentures |
| b. Sale of Goods against Cash | g. Payment of Interim Dividend | e. Issued Fully Paid Bonus Shares |
| f. Cash Withdrawn from Bank |
Note: Cash withdrawn from bank causes no flow, since both bank balance and cash-in-hand are part of the same aggregate “Cash and Cash Equivalents” pool — moving money between them does not change the total.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.3 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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