Question

Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019:

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 (Surplus, i.e.,Balance in Statement of Profit and Loss)		2,00,000	1,45,000
2. Current Liabilities:
(a) Trade Payables		90,000	50,000
(b) Other Current Liabilities		20,000	10,000
(c) Short-term Provisions	1	50,000	30,000
Total		8,60,000	7,35,000
II. ASSETS
1. Non-Current Assets:
(a) Fixed Assets		4,50,000	4,00,000
(b) Non-Current Investments		50,000	1,50,000
2. Current Assets:		2,60,000	1,85,000
Total		8,60,000	7,35,000

Notes to Accounts:

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Short-term Provisions:
Provision for Tax	50,000	30,000

Additional Information:
(i) Proposed Dividend for the years ended 31st March 2018 and 2019 are ₹ 50,000 and ₹ 75,000 respectively.
(ii) Interim Dividend paid during the year was ₹ 10,000.

Answer 1

Particulars	Amount (₹)
Profit as per Statement of Profit and Loss (2,00,000 – 1,45,000)	55,000
(+) Provision for Taxation	50,000
(+) Proposed Dividend	50,000
(+) Interim Dividend Paid	10,000
Profit Before Taxation and Extraordinary Items	1,65,000