Following is the extract of Balance sheet of Mayur Ltd.

Notes of Accounts

Proposed Dividend for the year ended Mar. 31'21 was ₹2,50,000 and for the year ended Mar. 31'22 was ₹3,50,000.

What will be the amount of Dividend paid as an outflow in financing activities for year ended Mar. 31'2022?

₹ 2,40,000

The correct answer is Option (3) → ₹ 2,40,000.

Proposed dividend of 2021 = ₹250000
Unclaimed dividend of 2021 = ₹20000
Unclaimed dividend of 2022 = ₹30000

Proposed dividend of the previous year(2021) is paid in the current year(2022).

Unclaimed dividend in 2022 is increased by ₹10000 which means ₹10000 proposed dividend of 2021 is not claimed by shareholders in 2022.

Dividend paid in 2022 = Proposed dividend of 2021 - Increase in unclaimed dividend
                                = 250000 - 10000
                                = ₹240000.