65. During the year, a business was bought by issue of ₹25,000 debentures and ₹25,000 shares. The business bought had machine worth ₹20,000, Debtors ₹15,000, Stock ₹5,000 and Creditors ₹5,000. Determine the effect of thi

CS Executive · Cost and Management Accounting · PYQS · June 2021
65. During the year, a business was bought by issue of ₹25,000 debentures and ₹25,000 shares. The business bought had machine worth ₹20,000, Debtors ₹15,000, Stock ₹5,000 and Creditors ₹5,000. Determine the effect of this transaction on flow of funds.
(A) Net outflow of ₹15,000
(B) Net inflow of ₹15,000
(C) Neither inflow nor outflow
(D) None of the above

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Fund Flow Statement

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