Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Find out the cash from financing activities from the following information.

Particulars
Amount (₹)
Issue of equity shares 80000
Redemption of preference shares 30000
Interim dividend paid 25000
Interest on debentures 15000
Issue of debentures 30000

 

Options:

Inflow ₹80000

Outflow ₹80000

Inflow ₹40000

Outflow ₹40000

Correct Answer:

Inflow ₹40000

Explanation:
Particulars Inflow/Outflow Amount (₹)
Issue of equity share Inflow 80000
Redemption of preference shares Outflow 30000
Interim dividend paid Outflow 25000
Interest on debentures Outflow 15000
Issue of debentures Inflow 30000

Cash from financing activities = Total Inflow - Total Outflow
                                               = (80000+30000) - (30000+25000+15000)
                                               = 110000 - 70000
                                               = ₹40000