Question : AbC Ltd. purchased machinery of Rs. 20,00,000 issuing a cheque of Rs. 5,00,000 and 10% Debentures of Rs. 15,00,000. In the Cash Flow Statement, the transaction will be shown as

Option 1: Outflow under Investing Activity Rs. 20,00,000, inflow under Financing Activity as Receipt for Debentures Rs. 15,00,000

Option 2: Outflow under investing Activity Rs. 5,00,000

Option 3: Inflow of Rs. 15,00,000 as Financing Activity.

Option 4: None of the above

Question : AbC Ltd. purchased machinery of Rs. 20,00,000 issuing a cheque of Rs. 5,00,000 and 10% Debentures of Rs. 15,00,000. In the Cash Flow Statement, the transaction will be shown as

Option 1: Outflow under Investing Activity Rs. 20,00,000, inflow under Financing Activity as Receipt for Debentures Rs. 15,00,000

Option 2: Outflow under investing Activity Rs. 5,00,000

Option 3: Inflow of Rs. 15,00,000 as Financing Activity.

Option 4: None of the above

Question : The issue of 9% Debentures to a vendor for the purchase of machinery of Rs. 50,000 will result in inflow outflow or no flow of cash while preparing Cash Flow Statement __________.

Option 1: Inflow

Option 2: Outflow

Option 3: No changes

Option 4: Cash and cash equivalents

Question : Verma Ltd. paid Rs.1,20,000 as an installment for machinery purchased on credit which included interest of Rs. 20,000. How will this payment be presented while preparing a Cash Flow Statement?

Option 1: Principal amount i.e., Rs. 1,00,000 will be classified as an investing activity whereas interest amount i.e., Rs. 20,000 will be classified as financing activity.

Option 2: Principal amount i.e., Rs. 1,200,000 will be classified as an investing activity whereas interest amount i.e., Rs. 20,000 will be classified as financing activity.

Option 3: Principal amount i.e., Rs.50,000 will be classified as an investing activity whereas interest amount i.e., Rs. 10,000 will be classified as financing activity.

Option 4: None of the above

Question : Verma Ltd. paid Rs.1,20,000 as an installment for machinery purchased on credit which included interest of Rs. 20,000. How will this payment be presented while preparing a Cash Flow Statement?

Option 1: Principal amount i.e., Rs. 1,00,000 will be classified as an investing activity whereas interest amount i.e., Rs. 20,000 will be classified as financing activity.

Option 2: Principal amount i.e., Rs. 1,200,000 will be classified as an investing activity whereas interest amount i.e., Rs. 20,000 will be classified as financing activity.

Option 3: Principal amount i.e., Rs.50,000 will be classified as an investing activity whereas interest amount i.e., Rs. 10,000 will be classified as financing activity.

Option 4: None of the above