Which of the following transaction will not result into flow of cash?

Correct option is D

Cash deposited in bank represents an internal movement of cash, meaning cash is merely transferred from Cash-in-hand to Cash-at-bank. There is no inflow or outflow from the business; only the form of cash changes. Hence, it is not considered a cash flow as per the Cash Flow Statement standards.
All other options involve either cash inflow or outflow:
· Redemption of debentures → cash outflow
· Issue of preference shares → cash inflow
· Sale of plant → cash inflow
Therefore, the only option with no actual cash movement is the deposit of cash into the bank.
Information Booster
· Cash flow refers only to transactions involving external movement of cash.
· Internal transfers between cash and bank do not affect the cash flow statement.
· Cash flow statement is classified into Operating, Investing & Financing activities.
· Non-cash transactions like depreciation, provision, goodwill write-off do not appear in the cash flow statement.
· Cash equivalents include highly liquid investments with maturity of 3 months or less.