From the following, calculate cash flow from financing activities.
| Apr. 1, 2021 | Apr. 1, 2022 | |
| 8% Long term Loan | ₹2,00,000 | ₹2,50,000 |
On 1st Oct. 2021, the company repaid a loan of ₹1,00,000.
Answer & explanation
Correct answer: option 3
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