Question 07 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 07 Chapter 5 of +2-B

Table of Contents

The solution of Question 07 Chapter 4 of +2-B: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Net Profit before Tax and Extraordinary Items

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

Particulars	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		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.

The solution of Question 07 Chapter 4 of +2-B: –

Particulars	Note No	Rs
Profit Before Taxation and Extraordinary Items	1	1,65,000

		1,65,000

Notes to Accounts:

Particulars		Rs
1. Surplus, i.e., Balance in Statement of Profit and Loss
Opening Balance of Profit and Loss	2,00,000
Less: Closing Balance of Profit and Loss	1,45,000	55,000
Add: Proposed Dividend		50,000
Add: Proposed Preference Dividend		50,000
Add: Interim Dividend		10,000
		1,65,000