What will be the net effect of the transaction 'cash received from trade receivables ₹20,000, and discount allowed ₹2000' while making a cash flow statement?

Cash inflow of ₹20,000

The correct answer is option 1- Cash inflow of ₹20,000.

Cash received by the company is a cash inflow.
Cash received from trade receivables ₹20,000.

Discount allowed ₹2,000.It has no affect on the cash inflow as exact cash inflow is mentioned. So, it will be the inflow of cash of 20,000.