Question

Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		5,00,000	5,00,000
(b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss)		2,00,000	1,45,000
2. Current Liabilities
(a) Trade Payables		90,000	50,000
(b) Other Current Liabilities		20,000	10,000
(c) Short-term Provisions	1	50,000	30,000
Total Total Expenses		8,60,000	7,35,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets		4,50,000	4,00,000
(b) Non-Current Investments		50,000	1,50,000
2. Current Assets		2,60,000	1,85,000
Total		8,60,000	7,35,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Short-term Provisions
Provision for Tax	50,000	30,000

Additional Information:

(i) Proposed Dividend for the years ended 31st March, 2018 and 2019 are ₹ 50,000 and ₹ 75,000 respectively.
(ii) Interim Dividend paid during the year was ₹ 10,000.

Answer 1

	Particulars	Amount (₹)
	Profit as per Statement of Profit and Loss (2,00,000 – 1,45,000)	55,000
	Add: Proposed Dividend (Current Year)	50,000
	Add: Provision for Taxation (Current Year)	50,000
	Add: Interim Dividend Paid	10,000
	Profit Before Taxation and Extraordinary Items	1,65,000