Identify the cash transaction from the following:
(
This question was previously asked in
Shift 28/05/2023 3:30 PM - 6:30 PM
A
Purchase of machinery by issue of preference shares
B
Redemptiom of Debentures by issuing equity shares
C
Issue of Debentures as collateral security
D
Purchase of land by taking loan
Correct Answer
Purchase of land by taking loan
Detailed Explanation
Purchase of land by taking loan involves receipt of cash through loan for specific purpose of acquiring the land .
The cash transaction refers to an exchange of cash. From the options provided:
(4) Purchase of land by taking a loan
This is the only transaction that involves an immediate exchange of cash, as the company is taking a loan to purchase the land. The other options involve transactions that do not directly involve the exchange of cash
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