From the following information, calculate cash flow from financing activities.
|
Particulars |
31 March 2021 |
31 March 2022 |
|
Proposed dividend |
₹2,40,000 |
₹3,00,000 |
If dividend payable was ₹30,000 on 31 March 2021 and ₹40,000 on 31 March 2022.
Determine outflow of cash from financing activities.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹2,30,000
Last year’s proposed dividend is declared this year and becomes dividend payable; dividend is paid within 30 days of declaration. This year’s proposed dividend is not paid this year.
Dividend paid = opening dividend payable + last year’s proposed dividend − closing dividend payable
= ₹30,000 + ₹2,40,000 − ₹40,000
= ₹2,30,000 (outflow from financing activities)
NCERT (2026-27 edition):
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