Financial Statements

Cash Flow

Medium

A part of fixed Assets costing Rs. 2,00,000 (Book value Rs. 1,50,000) was sold at a gain of Rs. 10,000. How it will affect the cash flow statement?

Inflow Rs. 1,60,000 in Investing Activities and Add Rs. 10,000 in Operating Activities

Inflow Rs. 1,60,000 in Investing Activities and less Rs. 10,000 in Operating Activities

Inflow Rs. 2,10,000 in Investing Activities Add Rs. 10,000 in Operating Activities

Inflow Rs. 2,10,000 in Investing Activities and Less Rs. 10,000 in Operating Activities

✅ Correct Option: 2

Sale proceeds $=$ Book value $+$ Gain $= 1{,}50{,}000 + 10{,}000 = 1{,}60{,}000$ , shown as inflow from Investing Activities. The gain of Rs. 10,000 is non-operating, so it is deducted (less) from net profit while computing cash from Operating Activities under the indirect method.

2022: 20 July Shift 1

Identify the items NOT be shown under Investing Activities while making Cah Flow statement.

(a) Proposed Dividend

(b) Purchase of non-current Investments

(d) Sale of machinery

(e) Marketable securities

Choose the most appropriate answer from the options given below :

2026: 11 May Shift 2

From the following information, calculate cash flows from financing activities:

	April 1,2025	March 31,2026
Long-term Loans	Rs. 2,00,000	Rs. 2,50,000

During the year, the company repaid a loan of Rs. 1,00,000.

2023: 11 June Shift 3

Calculate cash flow from financing Activities of X Ltd. which is a financing company.

Issue of shares Rs. 1,00,000

Issue of Bonus shares Rs. 50,000

Dividend paid Rs. 10,000

Interest paid Rs. 5,000

2022: 30 Aug Shift 2

Match List I with List II

	LIST I		LIST II
A.	Cash Equivalents	I.	Interim Dividend paid
B.	Financing Activities	II.	Selling & Distribution expenses paid
C.	Operating Activities	III.	Marketable securities
D.	Investing Activities	IV.	Dividend received on Shares held as investment

Choose the correct answer from the options given below:

2022: 8 Aug Shift 2

Which one of the following is not a 'Cash Outflow'?

2026: 20 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Receipt from royalties, fees, commission and other revenue	(I) Investing Activity
(B) Receipt from Interest and dividends	(II) Operating Activity
(C) Proceeds from issue of preference or equity shares	(III) Cash and Cash equivalent
(D) Current Investment	(IV) Financing Activity

Choose the correct answer from the options given below:

A part of fixed Assets costing Rs. 2,00,000 (Book value Rs. 1,50,000) was sold at a gain of Rs. 10,000. How it will affect the cash flow statement?

Solution

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