From the following information, calculate net cash inflow or net cash outflow from financing activities:

Long-term Loans April 1, 2016   ₹2,00,000
Long-term Loans March 31, 2017  ₹2,50,000
During the year, the company repaid a loan of ₹1,00,000.

₹50,000 Inflow

The correct answer is option 1- ₹50,000 Inflow.

• Opening balance of long-term loans = ₹2,00,000
• Closing balance = ₹2,50,000

Net increase in loans = ₹50,000

But during the year, the company repaid ₹1,00,000, which means:

• The company must have taken more loans to reach the closing balance.

So, New loan taken = Increase + Repayment
= 50,000 + 1,00,000
= ₹1,50,000

Net cash flow = Inflow − Outflow
                    = 1,50,000 - 1,00,000
                    = 50,000 (inflow)

                                          LONG TERM LOAN A/c