Based on the following, answer the question:
Balance Sheet of Pioneer Ltd., as on March 31, 2017
|
Particulars |
Note |
31st March 2017 (₹) |
31st March 2016 (₹) |
|
I. Equity and Liabilities |
|
|
|
|
1. Shareholders Funds |
|
|
|
|
a) Share Capital |
1 |
7,00,000 |
5,00,000 |
|
b) Reserve and Surplus |
2 |
4,20,000 |
2,50,000 |
|
2. Non-current Liabilities |
|
|
|
|
Long term borrowings: Bank Loan |
|
50,000 |
1,00,000 |
|
3. Current Liabilities |
|
|
|
|
a) Trade payables |
|
45,000 |
50,000 |
|
b) Other current liabilities: Outstanding rent |
|
7,000 |
5,000 |
|
c) Short-term provisions |
3 |
50,000 |
30,000 |
|
Total |
|
12,72,000 |
9,35,000 |
|
II. Assets |
|
|
|
|
1. Non-current assets |
|
|
|
|
a) Fixed assets |
|
|
|
|
(i) Tangible assets |
4 |
5,00,000 |
5,00,000 |
|
(ii) Intangible assets |
5 |
95,000 |
1,00,000 |
|
b) Non-current investments |
|
1,00,000 |
…. |
|
2. Current assets |
|
|
|
|
a) Inventories |
|
1,30,000 |
50,000 |
|
b) Trade receivables |
|
1,20,000 |
80,000 |
|
c) Cash and Cash equivalents |
6 |
3,27,000 |
2,05,000 |
|
Total |
|
12,72,000 |
9,35,000 |
Notes to Accounts:
|
Particulars |
31st March 2017 (₹) |
31st March 2016 (₹) |
|
1. Equity share capital |
7,00,000 |
5,00,000 |
|
2. Reserve and Surplus |
|
|
|
Surplus: i.e., Balance in statement of Profit and Loss |
4,20,000 |
2,50,000 |
|
3. Short term provision: |
|
|
|
Provision for Taxation |
50,000 |
30,000 |
|
4. Fixed Assets |
|
|
|
Tangible assets |
|
|
|
- Equipment |
2,30,000 |
2,00,000 |
|
- Furniture |
2,70,000 |
3,00,000 |
|
|
5,00,000 |
5,00,000 |
|
5. Intangible Assets |
|
|
|
Patents |
95,000 |
1,00,000 |
|
6. Cash and Cash equivalents |
|
|
|
i) Cash |
27,000 |
5,000 |
|
ii) Bank balance |
3,00,000 |
2,00,000 |
|
|
3,27,000 |
2,05,000 |
During the year, equipment costing ₹80,000 was purchased. Loss on sale of equipment amounted to ₹5,000. Depreciation of ₹15,000 and ₹30,000 charged on equipment and furniture respectively. Proposed Dividend for the year 2015-16 was ₹50,000, which was paid during the year.
Find the amount of net profit before taxation and extra-ordinary item.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹2,70,000
The rise in the balance of the Statement of Profit and Loss is the profit left after tax and after the dividend paid out of it, so both are added back.
Surplus at the end − surplus at the beginning = ₹4,20,000 − ₹2,50,000 = ₹1,70,000
Add: Provision for tax made during the year = ₹50,000
Add: Dividend of 2015-16 paid during the year = ₹50,000
Net profit before taxation and extraordinary items = ₹2,70,000
NCERT (2026-27 edition):
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