Introduction:
Marketable securities are investments that can easily be bought or sold on a public exchange. When a company decides to sell its marketable securities, it can result in a cash inflow or outflow, depending on the circumstances. In this article, we will discuss whether the sale of marketable securities at par would result in an outflow or inflow of cash.

Sale of Marketable Securities at Par:
When a company sells its marketable securities at par, it means that it is selling them at their face value. For example, if a company is selling bonds at par, it means that they are selling them for the same price at which they were issued. In this case, the sale of marketable securities at par would result in neither an outflow nor an inflow of cash. The reason for this is that the company is receiving the same amount of cash that it originally invested in the securities.

Impact of Market Conditions:
However, the sale of marketable securities at par can result in a cash inflow or outflow depending on the prevailing market conditions. If the market conditions have changed since the securities were issued, the price of the securities may have increased or decreased. In this case, the sale of the securities would result in either a cash inflow or outflow.

Conclusion:
In conclusion, the sale of marketable securities at par would result in neither an outflow nor an inflow of cash if the securities are sold at their face value. However, if the market conditions have changed since the securities were issued, the sale of the securities could result in a cash inflow or outflow. It is important for companies to consider the prevailing market conditions before deciding to sell their marketable securities to ensure that they receive the best possible return on their investment.

1. Sale of marketable securities will not result in any flow of cash as Marketable securities are considered as Cash and Cash Equivalents. Since they are already treated as cash, its sale will not have any effect on the Cash balance.

2.Dishonour of Bills Receivable will have the following two effects:
1) Decrease in Bills Receivable
2) Increase in Debtors

Since Bills Receivable and Debtors, both form part of Current Assets. Its increase and decrease will have no effect on the total value of current assets. Thus, Current Ratio will not show any change when bills receivable is dishonoured.

Hope this clarifies your doubt.