From the following, calculate cash flow from financing activities.

On 1^st Oct. 2021, the company repaid a loan of ₹1,00,000.

₹38,000

The correct answer is Option (3) → ₹38,000.

Loan at starting of the year = ₹2,00,000
Loan repaid = ₹1,00,000 means outflow of cash.
Remaining loan after repayment = 2,00,000 - 1,00,000
                                                    = ₹1,00,000

Loan at the end of the year = ₹2,50,000
Loan increased = 2,50,000 - 1,00,000
                         = ₹1,50,000 means inflow of cash.

Interest upto 1st oct  = 2,00,000 x 8/100 x 6/12
                                  = ₹8000 (outflow of cash)

Interest upto 31st march on remaining loan amount = 1,00,000 x 8/100 x 6/12
                                                                                  = ₹4000 (outflow of cash)

Cash flow from financing activity = loan increased(inflow) - loan repaid(outflow) - interest(outflow)
                                                   = 1,50,000 - 1,00,000 - 8,000 - 4,000
                                                   = 38,000