Question:medium
Which of the following transactions will not result in the inflow of cash ?
Which of the following transactions will not result in the inflow of cash ?
Show Hint
Cash inflow means money received by the business, whereas outflow is money spent. Purchases are always outflows.
Updated On: Jan 14, 2026
- Cash deposited in the bank ₹ 80,000
- Payment of salaries ₹ 50,000
- Issue of 9% debentures ₹ 10,00,000
- Purchase of machinery ₹ 2,00,000
Show Solution
The Correct Option is D
Solution and Explanation
Purchasing machinery represents a cash outflow, not an inflow, meaning it does not contribute to funds entering the business. While options A and C describe cash inflows, and option B (salary payment) is a cash outflow, option D specifically denotes an investment outflow.
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Additional Information:
(i) rupee50,000 was charged as depreciation on Plant and Machinery. A machinery costing rupee60,000 (Book Value Rupees 45,000) was sold for Rupees 42,000.
(ii) Bank loan was repaid on 1st April, 2022.
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