From the following, calculate cash flow from financing activities.
| Apr. 1, 2021 | Mar. 31, 2022 | |
| 8% Long term Loan | ₹2,00,000 | ₹2,50,000 |
On 1st Oct. 2021, the company repaid a loan of ₹1,00,000. A new loan was raised on 31st March 2022. Interest on the loan was paid in cash.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹38,000
A new loan is the balancing figure of the loan account; interest paid on the loan is also a financing outflow.
New loan raised = ₹2,50,000 + ₹1,00,000 − ₹2,00,000 = ₹1,50,000 (inflow)
Repayment of loan = ₹1,00,000 (outflow)
Interest on the loan repaid, 1st April to 30th September = ₹1,00,000 × 8% × 6/12 = ₹4,000
Interest on the remaining old loan for the year = ₹1,00,000 × 8% = ₹8,000
Interest on the new loan (raised on 31st March) = nil
Interest paid = ₹12,000 (outflow)
Net cash from financing activities = ₹1,50,000 − ₹1,00,000 − ₹12,000 = ₹38,000
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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