With the help of following information of a company, calculate Cash Flow from Financing Activities.
April 1, 2016 March 31, 2017
Long term loans (₹) 2,00,000 (₹) 2,50,000
During the year the company repaid a loan of ₹1,00,000.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Inflow ₹50,000
The new loan raised is the balancing figure of the Long-term Loan Account.
New loan raised = closing balance + loan repaid − opening balance
= ₹2,50,000 + ₹1,00,000 − ₹2,00,000 = ₹1,50,000 (inflow)
Repayment of loan = ₹1,00,000 (outflow)
Net cash flow from financing activities = ₹1,50,000 − ₹1,00,000 = ₹50,000 inflow
NCERT (2026-27 edition):
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