alleryStart learning →A business is bought for Rs 12 lakh, Rs 5 lakh in cash and the rest in shares. The investing outflow is
ARs 7 lakh
BRs 12 lakh
CRs 17 lakh
DRs 5 lakh
Answer & Solution
Correct answer: D. Rs 5 lakh
Only the Rs 5 lakh paid in cash is a cash flow; the share-funded Rs 7 lakh is a non-cash transaction.
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