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Prepare the Note to Show Net Profit before Tax and Extraordinary Items. - Accountancy

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Question

Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019

Particular

31st March

2019

(₹)

31st March

2018

(₹)

Surplus, i.e., Balance in Statement of Profit and Loss

10,00,000

5,00,000

Dividend Payable

50,000

Additional Information: Proposed Dividend for the years ended 31st March, 2018 and 2019 are ₹ 4,00,000 and ₹ 5,00,000 respectively.
Prepare the Note to show Net Profit before Tax and Extraordinary Items.

Numerical
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Solution

 

Particulars

Amount

(₹)

 

Profit as per Statement of Profit and Loss (10,00,000 – 5,00,000)

5,00,000

 

Add: Proposed Dividend (Current Year)

4,00,000

 

Profit Before Taxation and Extraordinary Items

9,00,000

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Chapter 4: Cash Flow Statement - Exercises [Page 90]

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TS Grewal Accountancy - Analysis of Financial Statements [English] Class 12
Chapter 4 Cash Flow Statement
Exercises | Q 5 | Page 90
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