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Question :

Following is the extract From the balance sheets of Poorva Ltd.

Liabilities

31-03-2022

31-03-2021

Surplus i.e balance in statement of profit and loss

230000

190000

Proposed Dividend

60000    

40000

Dividend Payable

9000

-

Net Profit before tax and Extraordinary items will be :

Option 1: Rs.1,90,000

Option 2: Rs.40,000

Option 3: Rs.1,00,000

Option 4: None of the above


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: Rs.1,00,000


Solution :

  Net Profit Before tax  
  Surplus i .e. Balance in Profit and loss (Closing) 230000
Less
Surplus i .e. Balance in Profit and loss (Opening)
190000
    40000
Add Proposed Dividend during the Year 60000
  Net Profit before tax and Extra ordinary Item 100000

Hence the correct answer is option 3.

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