Only the cash portion of the machinery acquisition is reported in the cash flow statement.
Cash paid = 5,00,000 x 50% = 2,50,000 (outflow).
This is classified as an Outflow from Investing Activity. The bond executed for the balance is a non-cash transaction.
Calculate and state the nature of activity under cash flow statement : Acquired Machinery for Rs. 5,00,000 paying 50% by cheque and executing a bond…
CUET UG 2023 — Accountancy Financial Statements
2023mcqmedium
Calculate and state the nature of activity under cash flow statement :
Acquired Machinery for Rs. 5,00,000 paying 50% by cheque and executing a bond for the balance payable :
Official previous-year question
Held on 28 May 2023 · Verified 13 Jul 2026.
Options
- A
Inflow operating activity Rs. 2,50,000
- B
Outflow Investing activity Rs. (5,00,000)
- C
Inflow Investing activity Rs. (5,00,000)
- D
Outflow Investing activity Rs. (2,50,000)
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