From the following information, calculat

CUET Preparation Today

Start Free Mocks

Home Questions 3AHXYGPRB9

Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

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.

Options:

₹50,000 Inflow

₹1,50,000 Inflow

₹2,50,000 Outflow

₹1,00,000 Outflow

Correct Answer:

₹50,000 Inflow

Explanation:

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

LONG TERM LOAN A/c

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To cash A/c (loan paid)	1,00,000	By balance b/d	2,00,000
To balance c/d	2,50,000	By cash A/c (loan raised) (balancing figure)	1,50,000
	3,50,000		3,50,000

Net cash flow = Cash outflow (repayment) - Cash inflow(raised loan)
= 1,00,000 - 1,50,000
= 50,000 (inflow)