What will be the amount of cash inflows from financing activities?
Long term Loans as on 1st April, 2024 – Rs. 3,00,000
Long term Loans as on 31st March, 2025 – Rs. 3,50,000
Repayment of loan during the year – Rs. 1,50,000
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 2,00,000
The loan balance moves by what is raised and what is repaid: closing loan = opening loan + loan raised − loan repaid. The cash inflow from financing activities is the loan raised.
Loan raised = closing loan − opening loan + loan repaid
Loan raised = Rs. 3,50,000 − Rs. 3,00,000 + Rs. 1,50,000 = Rs. 2,00,000
The repayment of Rs. 1,50,000 is a separate cash outflow of financing activities. It is not set off against the inflow, because the question asks for the inflow only; the net cash from these loan items would be Rs. 2,00,000 − Rs. 1,50,000 = Rs. 50,000.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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