Following is the extract from the Balance Sheet of Zee Ltd.:

Particular

31^st March

2019

(₹)

31^st March

2018

(₹)

Equity Share Capital
8,00,000

8,00,000

10% Preference Share Capital 6,00,000 6,00,000

Surplus i.e., Balance in Statement of Profit and Loss 7,20,000 4,00,000

Unpaid Dividend
20,000

–

Additional Information:
(i) Proposed dividend on equity shares for the year 2017-18 and 2018-19 are ₹ 1,60,000 and ₹ 2,00,000 respectively.
(ii) An Interim Dividend of ₹ 40,000 on Equity Shares was paid.
Calculate Net Profit before Tax and Extraordinary Items.

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Solution

Particulars

Amount

(₹)

Profit as per Statement of Profit and Loss (7,20,000 – 4,00,000)

3,20,000

Add: Proposed Dividend (Current Year)

1,60,000

Add: Proposed Preference Dividend (Current Year) 10% of 6,00,000

60,000

Add: Interim Dividend

40,000

Profit Before Taxation and Extraordinary Items

5,80,000

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Similar questions

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

Particular

31^st March

2019

(₹)

31^st 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.

From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:

Particulars	31^st March, 2019 (₹)	31^st March, 2018 (₹)
Equity Share Capital	5,25,000	4,00,000
10% Preference Share Capital	4,00,000	5,50,000
Securities Premium Reserve	2,25,000	1,00,000
12% Debentures	4,00,000	3,00,000

Additional Information:
1. Equity Shares were issued on 31st March, 2019.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2019 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
4. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2019.

From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities:

Particular	31^st March 2019 (₹)	31^st March 2018 (₹)
Equity Share Capital	13,75,000	11,25,000
5% Preference Share Capital	5,00,000	7,50,000
General Reserve	3,75,000	3,00,000
Surplus i.e., Balance in Statement of Profit and Loss	3,75,000	(3,50,000)
Securities Premium Reserve	25,000	...
Provision for Tax	1,00,000	50,000
Non-current Liabilities (8% Debentures)	6,50,000	3,75,000
Short-term Borrowings (8% Bank Loan)	1,00,000	1,25,000
Trade Payables	5,00,000	2,50,000
Trade Receivables and Inventories	13,00,000	11,50,000

Additional Information:
(i) During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date.
(ii) Dividend on Equity Shares @ 8% was paid on Opening Balance.
(iii) Income tax ₹ 1,12,500 has been provided during the year.
(iv) Preference shares were redeemed at par at the end of the year.

XYZ. Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:

Particular

31^st March,

2019 (₹)

31^st March,

2018 (₹)

2,00,000

Additional Information:
1.Interest paid on debentures ₹ 19,000.
2. Dividend paid in the year ₹ 50,000.
3. During the year, XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by captialising reserve.

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	1,00,000

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Particular	31^st March 2019 (₹)	31^st March 2018 (₹)
Equity Share Capital	8,00,000	8,00,000
10% Preference Share Capital	6,00,000	6,00,000
Surplus i.e., Balance in Statement of Profit and Loss	7,20,000	4,00,000
Unpaid Dividend	20,000	–

	Particulars	Amount (₹)
	Profit as per Statement of Profit and Loss (7,20,000 – 4,00,000)	3,20,000
	Add: Proposed Dividend (Current Year)	1,60,000
	Add: Proposed Preference Dividend (Current Year) 10% of 6,00,000	60,000
	Add: Interim Dividend	40,000
	Profit Before Taxation and Extraordinary Items	5,80,000