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
Financing activities change the company’s owners’ capital (preference capital included) and borrowings. Money raised is an inflow; repayments, dividends and interest paid to providers of funds are outflows.
Inflows:
Issue of equity shares = ₹80,000
Issue of debentures = ₹30,000
Total inflows = ₹1,10,000
Outflows:
Redemption of preference shares = ₹30,000
Interim dividend paid = ₹25,000
Interest on debentures = ₹15,000
Total outflows = ₹70,000
Net cash from financing activities = ₹1,10,000 − ₹70,000 = ₹40,000 (inflow)
₹80,000 takes only the issue of equity shares and leaves out every other item.
NCERT (2026-27 edition): NCERT (2026-27 edition):
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