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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2025:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|
| 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, 2024 and 2025 are ₹4,00,000 and ₹5,00,000 respectively.
Prepare the Note to show Net Profit before Tax and Extraordinary Items.
Note: Net Profit before Tax and Extraordinary Items
| Particulars | Amount (₹) |
|---|---|
| Profit as per Statement of Profit and Loss (10,00,000 − 5,00,000) | 5,00,000 |
| Add: Dividend Paid during the year (Proposed Dividend for the year ended 31st March, 2024, approved and paid during the current year) | 4,00,000 |
| Net Profit before Tax and Extraordinary Items | 9,00,000 |
Note: Dividend Payable is recognised only when declared/approved at the AGM, not provided for in advance. Hence the Dividend Payable of ₹5,00,000 proposed for the year ended 31st March, 2025 has not yet reduced Surplus and does not feature in this note — it will be paid, and adjusted here, only in the following year.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.5 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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