From the following information, calculate cash flow from financing activities:
| April 1, 2025 | March 31, 2026 | |
|---|---|---|
| Long-term Loans | Rs. 2,00,000 | Rs. 2,50,000 |
During the year, the company repaid a loan of Rs. 1,00,000.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Cash flow (Inflow) from Financing Activities Rs. 50,000
Cash flow from financing activities is the net of the cash raised by long-term borrowing and the cash paid back on it.
Loans at the start = Rs. 2,00,000
Loans at the end = Rs. 2,50,000
Repaid during the year = Rs. 1,00,000 (outflow)
Fresh loan raised = Rs. 2,50,000 + Rs. 1,00,000 − Rs. 2,00,000 = Rs. 1,50,000 (inflow)
Net cash flow = Rs. 1,50,000 − Rs. 1,00,000 = Rs. 50,000 inflow
Note 1: In the original question, both Option (1) and Option (2) were correct as per the NTA Answer Key. The paper printed Option (1) as Cash flow (Inflow) from Financing Activities Rs. 50,000 and Option (2) as Cash flow (Inflow) from Financing Activities Rs. 1,50,000. For the benefit of students and to ensure a single answer, Option (2) has been changed to Cash flow (Inflow) from Financing Activities Rs. 3,50,000.
Note 2: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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