Will ‘acquisition of machinery by issue of equity shares’ be considered while preparing ‘Cash Flow Statement’? Give reason in support of your answer. Post category:Accountancy Reading time:1 mins read SOLUTION It will not be considered while preparing cash flow statement because there is no flow of cash. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostNormally, what should he the maturity period for a short-term investment from the date of its acquisition to be qualified as cash equivalents? (C.B.S.E. 2017) Next PostState whether the following will increase, decrease or have no effect cash flow from operating activities while preparing ‘Cash Flow Statement’: (i) Decrease in outstanding employees benefits expenses by Rs. 3,000; (ii) Increase in prepaid insurance by Rs. 2,000. (C.B.S.E. 2017) You Might Also Like What is indicated by High Inventory Turnover Ratio? October 3, 2022 Jain Ltd purchased machinery costing Rs. 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50%, the company issued Equity Shares of Rs. 100 each at a premium of 25%. Pass necessary Journal entries in the books of Jain Ltd. for the above transaction. July 14, 2022 Bhuwan and Shivam were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were Rs. 50,000 and Rs. 75,000 respectively. They admitted Atul on 1st April, 2018 as a new partner for 1/4th share in future profits. Atul brought Rs. 75,000 as his capital. Calculate the value of goodwill of the firm and record necessary Journal entries for the above transactions on Atul’s admission. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Jain Ltd purchased machinery costing Rs. 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50%, the company issued Equity Shares of Rs. 100 each at a premium of 25%. Pass necessary Journal entries in the books of Jain Ltd. for the above transaction. July 14, 2022
Bhuwan and Shivam were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were Rs. 50,000 and Rs. 75,000 respectively. They admitted Atul on 1st April, 2018 as a new partner for 1/4th share in future profits. Atul brought Rs. 75,000 as his capital. Calculate the value of goodwill of the firm and record necessary Journal entries for the above transactions on Atul’s admission. August 1, 2022