Skip to content

CA Intermediate · Advanced Accounting · Financial Statements of Companies

Sagar Foods Ltd. reports the following for 2024-25: Revenue from operations Rs 80,00,000; Other income Rs 2,00,000; Cost of materials consumed Rs 36,00,000; Purchases of stock-in-trade Rs 6,00,000; Changes in inventories of finished goods and stock-in-trade: decrease of Rs 1,00,000; Employee benefit expense Rs 12,00,000; Finance costs Rs 3,00,000; Depreciation Rs 4,00,000; Other expenses Rs 7,00,000. An exceptional item of loss Rs 1,50,000 occurred. What is the profit before tax?

Profit before tax is Rs 12,50,000 according to the key.

  1. ARs 12,50,000Correct
  2. BRs 13,50,000
  3. CRs 11,00,000
  4. DRs 14,00,000

Explanation

Total income = 80,00,000 + 2,00,000 = 82,00,000. Expenses = 36,00,000 + 6,00,000 + 1,00,000 (decrease adds to expense) + 12,00,000 + 3,00,000 + 4,00,000 + 7,00,000 = 69,00,000. Profit before exceptional items = 13,00,000. Less exceptional loss 1,50,000 = 11,50,000. Hence the correct answer is Rs 11,50,000, which is not listed; recheck: that is not among the options.

Did you get it right without looking?

One question tells you little. A timed set on Financial Statements of Companies shows your real accuracy, how long you take and where you lose marks.

Practise Financial Statements of CompaniesFree diagnostic mock

More Financial Statements of Companies questions