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Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Study the information given below carefully and answer the following question.

Radhika an alumni of IIM Bangalore initiated her startup Radhika Ltd. in 2020. The profits of Radhika Ltd in the year 2021-2022 after all appropriations was ₹31,25,000. This profit was arrived after taking into consideration the following items:-

S No Particulars Amount ( In ₹)
1 Gain of sale of assets 12,50,000
2 Goodwill written off 7,80,000
3 Transfer to general Reserve 8,75,000
4 Provision for taxation 4,37,500

 

Additional Information:

S No Particulars 31.03.2022 ( In ₹)
 31.03.2021 (In ₹)
1 Prepaid Expenses 7,50,000 5,00,000
2 Inventory 10,50,000 8,20,000
3 Trades Payable 4,50,000 3,50,000
4 Trade Receivable 6,20,000 5,90,000

Net Profit before tax  and Extraordinary items will be ₹…………………………….

Options:

₹22,50,000

₹35,62,500

₹44,37,500

₹52,17,500

Correct Answer:

₹44,37,500

Explanation:

The correct answer is option 3- ₹44,37,500.

Net profit before tax  and Extraordinary items = Net profit after all appropriations + Transfer to general Reserve + Provision for taxation
                                 = 31,25,000 + 4,37,500 + 8,75,000
                                 = 44,37,500

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