From the following information, calculate cash flows from financing activities:
| April 1,2025 | March 31,2026 | |
| Long-term Loans | Rs. 2,00,000 | Rs. 2,50,000 |
During the year, the company repaid a loan of Rs. 1,00,000.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 50,000
Raising a loan is a financing inflow and repaying one is a financing outflow. The new loan raised is found from the loan account.
Opening loan Rs. 2,00,000 − loan repaid Rs. 1,00,000 = Rs. 1,00,000 left
Closing loan Rs. 2,50,000, so new loan raised = Rs. 2,50,000 − Rs. 1,00,000 = Rs. 1,50,000
Cash flow from financing activities = Rs. 1,50,000 − Rs. 1,00,000 = Rs. 50,000 (net inflow)
Shortcut: With no other financing item, the net cash flow equals the change in the loan balance: Rs. 2,50,000 − Rs. 2,00,000 = Rs. 50,000.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
|
