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Question
From the following information, calculate Net Profit before Tax and Extraordinary Items:
| Particulars | 31st March, 2026 (₹) | 31st March, 2025 (₹) |
|---|---|---|
| Surplus, i.e., Balance in Statement of Profit & Loss | 6,45,000 | (90,000) |
| Proposed Dividend | 1,35,000 | 90,000 |
| General Reserve | 3,60,000 | 2,70,000 |
| Workmen Compensation Reserve | 1,80,000 | 1,65,000 |
Additional Information:
Interim Dividend paid during the year: ₹ 1,80,000
Provision for Tax made during the year: ₹ 3,00,000
Refund of Tax: ₹ 6,00,000
Loss by Fire: ₹ 4,00,000
Insurance Claim Received: ₹ 2,00,000
Numerical
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Solution
Net Profit before Tax and Extraordinary Items
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Surplus (Balance in Statement of Profit & Loss): | ||
| Closing Balance as on 31st March, 2026 | 6,45,000 | |
| Less: Opening Balance as on 31st March, 2025 | $$-(-90,000)$$ | |
| Net Profit earned during the current year | 7,35,000 | |
| Add: Appropriations and Extraordinary Losses | ||
| 1. Proposed Dividend for the previous year (ended 31st March, 2025) | 90,000 | |
| 2. Transfer to General Reserve \[(3,60,000 - 2,70,000)\] | 90,000 | |
| 3. Transfer to Workmen Compensation Reserve $(1,80,000 - 1,65,000)$ | 15,000 | |
| 4. Interim Dividend paid during the year | 1,80,000 | |
| 5. Provision for Tax made during the year | 3,00,000 | |
| 6. Loss by Fire (Extraordinary Item) | 4,00,000 | 10,75,000 |
| Less: Non-Operating Incomes and Extraordinary Gains | ||
| 1. Refund of Tax | (6,00,000) | |
| 2. Insurance Claim Received (Extraordinary Item) | (2,00,000) | (2,06,000) |
| Net Profit before Tax and Extraordinary Items | 16,04,000 |
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