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Question : Acquired machinery for Rs. 2,50,000 paying 20% down and executing a bond for the balance payable. Cash flow from investing activities is

Option 1: Cash used in investing activities Rs 2,00,000

Option 2: Cash used in investing activities Rs 50,000

Option 3: Cash used in investing activities RS 1,50,000

Option 4: None of the above


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Cash used in investing activities Rs 50,000


Solution : Answer = Cash used in investing activities Rs 50,000
Cash used in investing activities Rs 50,000
Machinery a/c.....Dr 2,50,000
To bank a/c 50,000
To bonds a/c 2,00,000.

Cash flow from investing activities
Outflow  
Machinery purchased 50,000

Hence, the correct option is 2.

 

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