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 17th Jan, 2024
Answer (1)
Team Careers360 19th 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.

Related Questions

Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
UPES | BBA Admissions 2025
Apply
#41 in NIRF, NAAC ‘A’ Grade | 100% Placement, up to 30% meritorious scholarships | Last Date to Apply: 28th Feb
MAHE Manipal M.Tech 2025
Apply
NAAC A++ Accredited | Accorded institution of Eminence by Govt. of India | NIRF Rank #4
Sanskriti University LLM Admi...
Apply
Best innovation and research-driven university of Uttar Pradesh
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books