Question :
| Surplus, i.e., Balance in Statement of Profit and Loss (Opening) | 50,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss (Closing) | 1,18,000 |
| Dividend paid (proposed dividend for the previous year) | 36,000 |
| Interim Dividend paid during the year | 45,000 |
| Transfer to Reserve | 50,000 |
| Provision for Tax made during the current year | 75,000 |
| Refund of Tax | 1,500 |
| Loss of Inventory due to Fire | 1,00,000 |
| Insurance Claim Received for above Loss | 50,000 |
From the following information, Net profit before tax and extraordinary items are-----------
Option 1: Rs 3,22,500
Option 2: Rs 3,72,500
Option 3: Rs 4,00,000
Option 4: None of the above.
Correct Answer: Rs 3,22,500
Solution :
Answer =
Rs 3,22,500
Calculation of N.P. Before Tax and Extraordinary items.
| N.P After charging Tax and Extraordinary items(1,18,000-50,000) | 68,000 |
| (+) Tax made/charged | 75,000 |
| (+) Transfer to Reserve | 50,000 |
| (+) Proposed dividend (p.y) | 36,000 |
| (+) Interim dividend | 45,000 |
| (+) Extraordinary item loss due to Inventory due to fire | 1,00,000 |
| (-) Extraordinary items | |
| Refund of tax | (1,500) |
| Insurance claim received | (50,000) |
| N.P Before tax and Extraordinary items | 3,22,500 |
Hence, the correct option is 1.
Related Questions
Question : From the following information,
| Net Prof-it before Tax and Extraordinary Items | 2,23,500 |
| Depreciation | 42,000 |
| Interest on Borrowings | 8,400 |
| Goodwill Amortised | 9,300 |
| Loss on Sale of Machinery | 9,000 |
| Premium on Redemption of Debentures | 3,000 |
| Interest and Dividend Received on Investments | 13,800 |
| Profit on Sale of Investments | 6,000 |
Operating profit before change in working capital is------------.
Option 1: Rs 2,92,400
Option 2: Rs 2,72,400
Option 3: Rs 3,00,000
Option 4: None of the above
Question : From the following information,
| Net Prof-it before Tax and Extraordinary Items | 2,23,500 |
| Depreciation | 42,000 |
| Interest on Borrowings | 8,400 |
| Goodwill Amortised | 9,300 |
| Loss on Sale of Machinery | 9,000 |
| Premium on Redemption of Debentures | 3,000 |
| Interest and Dividend Received on Investments | 13,800 |
| Profit on Sale of Investments | 6,000 |
Operating profit before change in working capital is------------.
Option 1: Rs 2,92,400
Option 2: Rs 2,72,400
Option 3: Rs 3,00,000
Option 4: None of the above
Question : Following is the extract from the Balance Sheet of KBC Ltd:
| Equity and liabilities | 31st March, 2020(Rs) | 31st march, 2019(Rs) |
| Surplus, i.e. Balance in Statement of Profit and loss | 8,00,000 | 5,00,000 |
| Dividend Payable | 30,000 | ........... |
Dividend Proposed for the years ended 31st March, 2019 and 2020 were Rs 35,00,000 and Rs 23,50,000 respectively. Net profit before tax and extraordinary items are
Option 1: Rs 6,00,000
Option 2: Rs 38,00,000
Option 3: Rs 26,50,000
Option 4: Rs 3,00,000
Question : Following is the extract from the Balance Sheet of KBC Ltd:
| Equity and liabilities | 31st March, 2020(Rs) | 31st march, 2019(Rs) |
| Surplus, i.e. Balance in Statement of Profit and loss | 8,00,000 | 5,00,000 |
| Dividend Payable | 30,000 | ........... |
Dividend Proposed for the years ended 31st March, 2019 and 2020 were Rs 35,00,000 and Rs 23,50,000 respectively. Net profit before tax and extraordinary items are
Option 1: Rs 6,00,000
Option 2: Rs 38,00,000
Option 3: Rs 26,50,000
Option 4: Rs 3,00,000
Question : Following is the extract from the Balance Sheet of Beta Ltd.
| Equity and liabilities | 31st March, 2020(Rs) | 31st March, 2019(Rs) |
| Equity share capital | 5,00,000 | 5,00,000 |
| 10% Redeemable Preference share capital | 5,00,000 | 5,00,000 |
| Surplus,i.e Balance in statement of profit and loss | 4,50,000 | 2,50,000 |
| Dividend payable | 20,000 | ........ |
Additional Information:
1. Proposed dividend on equity shares for the years ended 31st March, 2019 and 2020 were Rs. 1,50,000 and Rs. 1,00,000 respectively.
2. An Interim Dividend of Rs. 50,000 on Equity Shares was paid on 31st December, 2019.
Net Profit before Tax and Extraordinary Items are
Option 1: Rs 4,50,000
Option 2: Rs 5,50,000
Option 3: Rs 10,00,000
Option 4: None of the above
