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Question : From the following information, calculate Cash Flow from Financing Activities:

  1st April, 2019 31st March, 2020
Long term loan 4,00,000 5,50,000

During the year, the company repaid a Loan of Rs. 1,00,000.

Option 1: Cash flow from financing activities is Rs 1,00,000

Option 2: Cash flow from financing activities Nil

Option 3: Cash used in investing activities Rs 1,50,000

Option 4: Cash flow from financing activities Rs 1,50,000


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Cash flow from financing activities Rs 1,50,000


Solution : Answer = Cash flow from financing activities Rs 1,50,000
Cash flow from financing activities Rs 1,50,000

Long-term loan a/c
To cash 1,00,000 By bal c/d 4,00,000
To bal c/d 5,50,000 By Bank 2,50,000
  6,50,000   6,50,000

 

Cash flow from financing activities
Proceeds of loan 2,50,000
- Payment of loan (1,00,000)
Cash flow from financing activities 1,50,000

Hence, the correct option is 4.

 

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