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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information, calculate Net Profit before Tax and Extraordinary Items:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|
| Surplus, i.e., Balance in Statement of Profit & Loss | 6,45,000 | (90,000) |
| Proposed Dividend | 1,35,000 | 90,000 |
| General Reserve | 3,60,000 | 2,70,000 |
| Workmen Compensation Reserve | 1,80,000 | 1,65,000 |
Additional Information:
| Interim Dividend paid during the year | 1,80,000 |
| Provision for Tax made during the year | 3,00,000 |
| Refund of Tax | 6,000 |
| Loss by Fire | 4,00,000 |
| Insurance Claim Received | 2,00,000 |
Note: Net Profit before Tax and Extraordinary Items
| Particulars | Amount (₹) |
|---|---|
| Surplus, i.e., Balance in Statement of Profit and Loss (6,45,000 − (−90,000)) | 7,35,000 |
| Add: Transfer to General Reserve (3,60,000 − 2,70,000) | 90,000 |
| Add: Transfer to Workmen Compensation Reserve (1,80,000 − 1,65,000) | 15,000 |
| Add: Provision for Tax made during the year | 3,00,000 |
| Add: Proposed Dividend (Current Year) | 1,35,000 |
| Add: Interim Dividend paid during the year | 1,80,000 |
| Add: Loss by Fire (Extraordinary Item) | 4,00,000 |
| Less: Refund of Tax | (6,000) |
| Less: Insurance Claim Received (Extraordinary Item) | (2,00,000) |
| Net Profit before Tax and Extraordinary Items | 16,49,000 |
Note: Proposed Dividend here is a same-year appropriation provision (unlike the "Dividend Payable" pattern in earlier questions), so the CURRENT year’s figure (₹1,35,000, the amount actually deducted from Surplus this year) is added back — consistent with the treatment of General Reserve and Workmen Compensation Reserve, both of which use their current-year movements.
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.9 - 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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