Question:medium

Which of the following transaction will result in flow of cash?

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Cash flow involves only those transactions that result in the inflow or outflow of actual cash, excluding non-cash transactions.
Updated On: Jan 13, 2026
  • Cash withdrawn from bank Rs.71,000
  • Issue of 9\% debentures of Rs.1,00,000 to the vendors of Machinery
  • Received from debtors Rs.74,000
  • Redeemed 10\% debentures by converting into equity shares
Show Solution

The Correct Option is C

Solution and Explanation

Monetary receipts from debtors constitute a cash inflow. Alternative scenarios represent either non-cash exchanges or internal fund movements.
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