Dividend Received of ₹60,000 on shares of another company, held as in…

The correct answer is Option (4) → Added in Investing Activities and Subtracted in Operating Activities

For a non-financial company, dividend received on investments is an investing inflow (₹60,000 added under investing activities). It is already included in net profit, so it is deducted from net profit while working out cash from operating activities, to avoid counting it twice.

Option (1) Added in Investing Activities and subtracted in Investing Activities — Incorrect. The deduction belongs in operating activities.

Option (2) Subtracted from Operating Activities and added in Financing Activities — Incorrect. Dividend received is not a financing item.

Option (3) Added in Operating Activities and Added in Investing Activities — Incorrect. It would then be counted twice.