Cash Flow Statement - 1

The Goodwill of X ltd. increased from ₹2,00,000 in 2022-23 to ₹3,50,000 in 2023-24. What will be its treatment while preparing Cash Flow Statement for the year ended 31st March 2024?

• Purchase of Goodwill (Outflow) under Investment Activities

• Write off Goodwill adjustment in operating activities

• Purchase of Goodwill (Inflow) under Investment Activities

• Purchase of Goodwill (Inflow) under Financing Activities

Under which type of activity will you classify ‘Rent received’ while preparing cash flow statement?

• Investment Activities

• Financing Activities

• Operating Activities

• None of the above

Payment of cash to acquire Debenture by an Investing Company

• Operating

• Investing

• Financing

• None of the above

Dividend paid by manufacturing company

• Operating

• Investing

• Financing

• Cash and Cash equivalents

• 40,000

• 42,600

• 61,600

• 64,000

A company issued 20,000; 9% Debentures of ₹ 100 each at 10% Discount. These debentures were to be redeemed at 15% Premium at the end of 5 years. The balance in Securities Premium Account as on the date of Issue was ₹ 3,70,000. How this transaction will be reflected in Cash Flow Statement?

• Added ₹ 1,30,000 under Operating Activities as Loss on Issue of Debentures written off and Inflow of ₹ 20,00,000 under Financing Activities.

• Added ₹ 5,00,000 under Operating Activities as Loss on Issue of Debentures written off and Inflow of ₹ 18,00,000 under Financing Activities.

• Added ₹ 1,30,000 under Operating Activities as Loss on Issue of Debentures written off and Inflow of ₹ 18,00,000 under Financing Activities.

• Added ₹ 5,00,000 under Operating Activities as Loss on Issue of Debentures written off and Inflow of ₹ 20,00,000 under Financing Activities.