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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
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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
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