# From the Following Information, Calculate Net Profit before Tax and Extraordinary Items: - Accountancy

Numerical

From the following information, calculate Net Profit before Tax and Extraordinary Items:

 Surplus, i.e., Balance in Statement of Profit and Loss (Opening) 1,00,000 Surplus, i.e., Balance in Statement of Profit and Loss (Closing) 3,36,000 Dividend paid in the current year 72,000 Interim Dividend Paid during the year 90,000 Transfer to Reserve 1,00,000 Provision for Tax for the current year 1,50,000 Refund of Tax 3,000 Loss due to Earthquake 2,00,000 Insurance Proceeds from Earthquake disaster settlement

#### Solution

 Particulars Amount (Rs) A Cash Flow from Operating Activities Profit as per Statement of Profit and Loss (3,36,000 − 1,00,000) 2,36,000 Add: Transfer to Reserve 1,00,000 Proposed Dividend 72,000 Interim Dividend 90,000 Provision for Tax 1,50,000 Extraordinary Items (Loss due to Earthquake) 2,00,000 Less: Extraordinary Items (Insurance Proceeds from Earthquake disaster settlement ) (1,00,000) Refund of Tax (3,000) Net Profit before Tax and Extraordinary Items 7,45,000
Concept: Preparation of Cash Flow Statement
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 8 | Page 92