12th | Cash Flow Statement | Question No. 5 To 8 | Ts Grewal Solution 2023-2024

Question 5:

Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2023:

Particular

31^st March

2023

(`)

31^st March

2022

(`)

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, 2022 and 2023 are ` 4,00,000 and ` 5,00,000 respectively.
Prepare the Note to show Net Profit before Tax and Extraordinary Items.

Answer:

	Particulars	Amount (`)
	Profit as per Statement of Profit and Loss (10,00,000 – 5,00,000)	5,00,000
	Add: Proposed Dividend (Current Year)	4,00,000
	Profit Before Taxation and Extraordinary Items	9,00,000

Question 6:

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

Particular	31^st March 2023 (`)	31^st March 2022 (`)
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 2021-22 and 2022-23 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.

Answer:

	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

Question 7:

From the following extract of Balance Sheet of Universal Ltd, calculate Net Profit before Tax and Extraordinary items:

Equity and Liabilities	31st March, 2023 (`)	31st March, 2022 (`)
Equity Share Capital	10,00,000	10,00,000
10% Preference Share Capital	10,00,000	10,00,000
Surplus, i.e., Balance in Statement of Profit & Loss	15,00,000	10,00,000

Additional Information:

Interim Dividend of 2,00,000 was paid on Equity Shares on 1st November, 2022.

Answer:

	Particulars	Amount (`)
	Profit as per Statement of Profit and Loss (15,00,000 – 10,00,000)	5,00,000
	Add:
	Interim Dividend Paid on Equity Shares	2,00,000
	Interim Dividend Paid on Preference Shares (10% on 10,00.000)	1,00,000
	Profit Before Taxation and Extraordinary Items	8,00,000

Question 8:

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, 2023 (`)	31st March, 2022 (`)
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, 2023 (`)	31st March, 2022 (`)
I. Short-term Provisions
Provision for Tax	50,000	30,000

Additional Information:

(i) Proposed Dividend for the years ended 31st March, 2022 and 2023 are ` 50,000 and ` 75,000 respectively.
(ii) Interim Dividend paid during the year was ` 10,000.

Answer:

	Particulars	Amount (`)
	Profit as per Statement of Profit and Loss (2,00,000 – 1,45,000)	55,000
	Add: Proposed Dividend (Current Year)	50,000
	Add: Provision for Taxation (Current Year)	50,000
	Add: Interim Dividend Paid	10,000
	Profit Before Taxation and Extraordinary Items	1,65,000