Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

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

Particulars
Amount (₹)
Issue of equity shares 80,000
Redemption of preference shares 30,000
Interim dividend paid 25,000
Interest on debentures 15,000
Issue of debentures 30,000

 

Options:

Inflow ₹80,000

Outflow ₹80,000

Inflow ₹40,000

Outflow ₹40,000

Correct Answer:

Inflow ₹40,000

Explanation:

The correct answer is option 3- Inflow ₹40,000.

 

Particulars Inflow/Outflow Amount (₹)
Issue of equity share Inflow 80,000
Redemption of preference shares Outflow 30,000
Interim dividend paid Outflow 25,000
Interest on debentures Outflow 15,000
Issue of debentures Inflow 30,000

Cash from financing activities = Total Inflow - Total Outflow
                                               = (80,000 + 30,000) - (30,000 + 25,000 + 15,000)
                                               = 1,10,000 - 70,000
                                               = ₹40,000