Question 03 Chapter 5 of +2-B – USHA Publication 12 Class

Question 03 Chapter 5 of +2-B
Q-3- CH-5 Book 2 - Usha Publisher +2 Book 2020 - Solution

Question 03 Chapter 5 of +2-B

3. (Identification of Inflow & Outflow of Transactions) State which of the following would result in inflow/outflow/no effect on cash in each of the following cases.
(a) Cash deposited into bank
(b) Dividend declared by the company
(c) Dividend received by the finance company
(d) Interest on Long term debts paid
(e) Payment of cash to creditors
(f) Bonus shares (fully paid up) issued
(g) Machinery purchased, payment made partly in cash and partly by issue of shares
(h) Receipts from loans and advances
(i) Marketable securities sold for cash
(j) Commission paid to agents
(k) Refund of tax

The solution of Question 03 Chapter 5 of +2-B: – 

Items
Effect on Cash
(a) Cash deposited in to bank No Effect
(b) Dividend declared by company No Effect
(c) Dividend received by finance company Inflow
(d) Interest on Long term debts paid Outflow
(e) Payment of cash to creditors Outflow
(f) Bonus shares (fully paid up) issued No Effect
(g) Machinery purchased, payment made partly in cash and partly by issue of shares Outflow
(h) Receipts from loans and advances Inflow
(i) Marketable securities sold for cash No Effect
(j) Commission paid to agents Outflow
(k) Refund of tax Inflow


Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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