Calculate Cash flow from Financing Activities from the following info…

The correct answer is option 1- ₹3,25,000 Inflow.

Issued of Share Capital = 10,00,000 - 15,00,000
                                  = 5,00,000 (inflow)

Redemption of Debentures = 2,50,000 - 1,00,000
                                       = 1,50,000 (outflow)

Interest Paid on debentures = 2,50,000 x 10/100
                                         = 25,000 (outflow)

Redemption of debentures and interest paid is outflow of cash whereas issue of share capital is an inflow of cash.
So, Net Cash Proceed from Financing Activities = 5,00,000 - 1,50,000 - 25,000
                                                                              = 3,25,000