Sir please tell me about the adjustment of stock purchased by issue of share capital in cash flow statment

asked Jan 25, 2017 in Cash Flow Statement and Fund Flow Statement by Shubham23 (2 points) 376 views

1 Answer

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If share capital is issued against purchase of stock, then there is no cash flow.  Neither cash or its equivalents have come in nor cash has gone out.  Such a transaction is reported at the end of the Cash Flow Statement.  For example if building is purchased and shares are issued to the vendor, such a transation will also not be repored in Cash Flow Statement, this will also be reported at the end of the Cash Flow Statement.
answered Jan 27, 2017 by jbsclasses (3,971 points)
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