Question:
The transaction ‘Acquisition of machinery by issue of equity shares of \rupee5,00,00,000’ will result in:
The transaction ‘Acquisition of machinery by issue of equity shares of \rupee5,00,00,000’ will result in:
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Non-cash transactions like acquiring assets through equity shares are disclosed as supplementary notes in the cash flow statement but do not affect cash inflow or outflow.
Updated On: Jan 20, 2025
- Cash inflow of \rupee5,00,00,000 from financing activities
- Cash outflow of \rupee5,00,00,000 from financing activities (3) Cash outflow of \rupee5,00,00,000 from investing activities (4) No flow of cash
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The Correct Option is D
Solution and Explanation
This transaction involves the acquisition of machinery through equity shares, which is a non-cash transaction. Therefore, there is no flow of cash.
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