Question

From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes: 

Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		5,00,000	5,00,000
(b) Reserves and Surplus	1	6,70,000	5,00,000
2. Current Liabilities
(a) Trade Payables		60,000	50,000
(b) Other Current Liabilities (Outstanding Expenses)		20,000	15,000
(c) Short-term Provisions (Provision for Tax)		1,00,000	90,000
Total		13,50,000	11,55,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible)		7,50,000	7,30,000
(b) Non-Current Investments		2,50,000	3,00,000
2. Current Assets		3,50,000	1,25,000
Total		13,50,000	11,55,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Reserve and Surplus
General Reserve	5,00,000	4,00,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,70,000	1,00,000
	6,70,000	5,00,000

Additional Information: Depreciation for the year was ₹75,000.

Answer 1

Computation of Operating Profit before Working Capital Changes for the year ended March 31, 2019
	Particulars		Amount (₹)	Amount (₹)
	Profit as per Statement of Profit and Loss (1,70,000 – 1,00,000)			70,000
	Transfer to General Reserve (5,00,000 – 4,00,000)			1,00,000
	Provision for Taxation (Current Year)			1,00,000
	Profit before Tax			2,70,000
	Items to be Added:
		Depreciation for the year		75,000
	Operating Profit before Working Capital Changes			3,45,000