From the following information of X Ltd, calculate Cash Flow from Financing Activities.ParticularsApril 1, 2021March 31, 2022Long-term Loan2,00,0002,6 - Accountancy MCQ CUET Accountancy 2022 23 Aug Shift 2 PYQs 2026 | ExamTest.live

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From the following information of X Ltd, calculate Cash Flow from Financing Activities.ParticularsApril 1, 2021March 31, 2022Long-term Loan2,00,0002,60,000During the year, the company repaid a loan of Rs. 1, 00, 000 . Long-term loan carried interest rate of 10% . The loan was repaid on 1st April 2021 and a fresh loan was taken on 31st March 2022.

Solution & Step-by-step Explanation

Opening Loan = Rs. 2, 00, 000 .Repayment made on 1st April 2021 = Rs. 1, 00, 000 .Remaining Loan outstanding throughout the year = 2, 00, 000 - 1, 00, 000 = 1, 00, 000 .Interest paid on outstanding loan = 10% of 1, 00, 000 = Rs. 10, 000 .Closing Loan on 31st March 2022 = Rs. 2, 60, 000 .Fresh loan taken on 31st March 2022 = Closing Balance - Remaining Balance = 2, 60, 000 - 1, 00, 000 = Rs. 1, 60, 000 .Cash Flow from Financing Activities:Proceeds from Fresh Loan = + 1, 60, 000 Repayment of Loan = - 1, 00, 000 Interest Paid = - 10, 000 Net Cash Flow = 1, 60, 000 - 1, 00, 000 - 10, 000 = + 50, 000 (Inflow).

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From the following information of X Ltd, calculate Cash Flow from Financing Activities.ParticularsApril 1, 2021March 31, 2022Long-term Loan2,00,0002,60,000During the year, the company repaid a loan of Rs. 1, 00, 000 . Long-term loan carried interest rate of 10% . The loan was repaid on 1st April 2021 and a fresh loan was taken on 31st March 2022.

Rs. 50, 000 outflow

Rs. 60, 000 inflow

Rs. 50, 000 inflow

Rs. 1, 60, 000 inflow

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