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 |
Answer & explanation
Correct answer: option 3
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