Given below are the extracts of information from Financial statements of Zucca Ltd.

Calculate amount of Net Profit after tax, if an interim dividend of ₹2,00,000 was declared and paid.

₹5,00,000

The correct answer is Option (2) → ₹5,00,000.

Net change in profit = 7,00,000 - 4,00,000
                              = 3,00,000

Interim dividend of ₹2,00,000 was declared and paid. Dividend is paid out of net profits after tax so it is added back to calculate net profit after tax.

Net profit = 3,00,000 + 2,00,000
              = 5,00,000