From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes:

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
1 6,70,000 5,00,000

2. Current Liabilities

(a) Trade Payables
60,000 50,000

(b) Other Current Liabilities (Outstanding Expenses)
20,000 15,000

(c) Short-term Provisions (Provision for Tax)

1,00,000 90,000

Total Total Expenses
13,50,000 11,55,000

II. ASSETS

1. Non-Current Assets

(a) Fixed Assets (Tangible)
7,50,000 7,30,000

(b) Non-Current Investments
2,50,000 3,00,000

2. Current Assets

3,50,000 1,25,000

Total
13,50,000 11,55,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

I. Reserve and Surplus

General Reserve
5,00,000 4,00,000

Surplus, i.e., Balance in Statement of Profit and Loss
1,70,000 1,00,000

6,70,000 5,00,000

Additional Information: Depreciation for the year was ₹75,000.

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Solution

Computation of Operating Profit before Working Capital Changes

for the year ended March 31, 2019

Particulars

Amount

(₹)

Amount

(₹)

Profit as per Statement of Profit and Loss (1,70,000 – 1,00,000)

70,000

Transfer to General Reserve (5,00,000 – 4,00,000)

1,00,000

Provision for Taxation (Current Year)

1,00,000

Profit before Tax

2,70,000

Items to be Added:

Depreciation for the year

75,000

Operating Profit before Working Capital Changes

3,45,000

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Similar questions

Q. 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.

From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:

Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		7,50,000	5,00,000
(b) Reserves and Surplus	1	9,50,000	3,00,000
2. Non-Current Liabilities
Long-term Borrowings (5% Debentures)		7,00,000	4,00,000
3. Current Liabilities
(a) Trade Payables		1,10,000	90,000
(b) Other Current Liabilities	2	39,000	25,000
(c) Short-term Provisions (Provision for Tax)		2,60,000	2,25,000
Total		28,09,000	15,40,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets – Tangible	3	6,85,000	7,45,000
(b) Non-current Investments		7,50,000	2,50,000
2. Current Assets
(a) Current Investments		6,74,000	95,000
(b) Inventories		1,00,000	2,00,000
(c) Trade Receivables		4,00,000	1,50,000
(d) Cash and Cash Equivalents		2,00,000	1,00,000
Total		28,09,000	15,40,000

STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019
Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Revenue from Operations	4	40,00,000	35,00,000
II. Other Income	5	35,000	30,000
III. Total Revenue (I + II)		40,35,000	35,30,000
IV. Expenses:
Purchases of Stock-in-Trade		27,00,000	24,70,000
Change in Inventories of Stock-in-Trade	6	1,00,000	50,000
Finance Cost		27,500	20,000
Depreciation		40,000	45,000
Other Expenses		22,500	20,000
Total Expenses		28,90,000	26,05,000
V. Profit before Tax (III – IV)		11,45,000	9,25,000
VI. Less: Tax		3,45,000	2,25,000
VII. Profit after Tax (V – VI)		8,00,000	7,00,000

Notes to Accounts

Particular		31^st March 2019 (₹)	31^st March 2018 (₹)
1.	Reserves and Surplus
	Debenture Redemption Reserve	1,00,000	1,00,000
	Surplus, i.e., Balance in Statement of Profit and Loss	8,50,000	2,00,000
		9,50,000	3,00,000
2.	Other Current Liabilities
	Interest on Debentures	35,000	20,000
	Outstanding Expenses	4,000	5,000
		39,000	25,000
3.	Fixed Assets–Tangible
	Cost	8,90,000	9,90,000
	Less: Accumulated Depreciation	2,05,000	2,45,000
		6,85,000	7,45,000
4.	Revenue from Operations
	Sales	42,00,000	35,75,000
	Less: Sales Return	2,00,000	75,000
		40,00,000	35,00,000
5.	Other Income
	Interest on Deposits	15,000	12,500
	Dividend on Investments	10,000	17,500
	Gain (Profit) on Sale of Fixed Assets	10,000	…
		35,000	30,000
6.	Change in Inventories of Stock-in-Trade
	Opening Stock	2,00,000	2,50,000
	Less: Closing Stock	1,00,000	2,00,000
		1,00,000	50,000

Additional Information:

From the following Balance Sheet of Combiplast Ltd. for the year ended 31st March, 2019 and additional information, calculate Cash Flow from Investing Activities:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		7,50,000	5,00,000
(b) Reserves and Surplus		10,00,000	8,50,000
2. Current Liabilities		4,50,000	3,50,000
Total Total Expenses		22,00,000	17,00,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets−Tangible Assets	1	12,00,000	12,00,000
(b) Non-Current Investments		5,00,000	3,00,000
2. Current Assets
(a) Trade Receivables		3,00,000	1,10,000
(b) Cash and Cash Equivalents		2,00,000	90,000
Total		22,00,000	17,00,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Tangible Assets
Land	3,00,000	3,00,000
Building	4,00,000	4,00,000
Plant and Machinery	5,00,000	5,00,000
	12,00,000	12,00,000

Additional Information: During the year the company sold machinery at Book Value of ₹ 1,50,000.

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.

Q. Prepare Balance Sheet of HP Ltd. as at 31st March, 2019 from the following information:

	₹		₹
Equity Share Capital	20,00,000	Surplus, i.e., Balance in Statement of Profit and Loss (Cr.)	3,00,000
12% Preference Share Capital	10,00,000	Stock	6,00,000
Fixed Assets (At cost)	46,60,000	Sundry Debtors	8,00,000
Accumulated Depreciation	16,60,000	Cash	1,50,000
Investments	4,00,000	Loans and Advances	50,000
Current Liabilities	8,00,000	Provision for Taxation	2,00,000
12% Debentures	6,00,000	Workmen Compensation Reserve	1,00,000

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Computation of Operating Profit before Working Capital Changes for the year ended March 31, 2019
	Particulars		Amount (₹)	Amount (₹)
	Profit as per Statement of Profit and Loss (1,70,000 – 1,00,000)			70,000
	Transfer to General Reserve (5,00,000 – 4,00,000)			1,00,000
	Provision for Taxation (Current Year)			1,00,000
	Profit before Tax			2,70,000
	Items to be Added:
		Depreciation for the year		75,000
	Operating Profit before Working Capital Changes			3,45,000