Question

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
Proposed Dividend for the Current Year	80,000
Interim Dividend Paid during the year	90,000
Transfer to Reserve	1,00,000
Provision for Tax made during the current year	1,50,000
Refund of Tax	3,000
Loss due to Earthquake	2,00,000
Insurance Proceeds from Earthquake disaster settlement	1,00,000

Answer 1

Particulars	Amount (Rs)
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
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	6,73,000