Royan Ltd. issued ₹1,00,000, 9% debentures of ₹100 each to public. Issue was subscribed. The amount will be shown as:

Financing Activity

The correct answer is Option (3) → Financing Activity.

When a company issues debentures, it is raising capital through debt, which is considered a financing activity. Financing activities are those that involve the inflow or outflow of cash from transactions related to the company's own capital or borrowing.

In this case, Royan Ltd. is issuing debentures to the public to raise funds, which qualifies as a financing activity. The cash received from the issue of debentures will be shown under financing activities in the cash flow statement. So, the amount will be shown as part of the Financing Activity.