Calculate cash flow from financing activities.
| Particulars | 01.04.2016 | 31.03.2017 |
| Long Term Loans | ₹2,00,000 | ₹2,50,000 |
During the year, company repaid a loan of ₹1,00,000.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 50,000.
LONG TERM LOAN A/c
| PARTICULARS | AMOUNT | PARTICULARS | AMOUNT |
| To cash A/c (paid) | 1,00,000 | By bal b/d | 2,00,000 |
| To bal c/d | 2,50,000 | By cash A/c (Raised) (balancing figure) | 1,50,000 |
| 3,50,000 | 3,50,000 |
Net cash flow = Cash outflow (repayment) - Cash inflow(raised loan)
= 1,00,000 - 1,50,000
= 50,000 (inflow)