Identify the amount of net cash flow from financing activities on the basis of following Information :
Bank loan raised during the year ₹2,00,000. |
₹2,00,000 inflow ₹4,00,000 inflow ₹2,00,000 outflow No flow of cash |
No flow of cash |
The correct answer is Option (4) - No flow of cash. Equity share capital increased means it is a cash inflow.
Bank loan A/c
Cash flow from bank loan = Outflow by paying loan - Inflow from raising of loan
Net Cash flow from financing activity = Cash inflow from equity - Cash outflow from bank loan Net cash flow is 0 means there is no flow of cash from financing activity.
**** It is the previous year question. The correct ans is no flow of cash and there is no such option in the question, so we changed the 4th option. |