Q1) The following are the extracts from the Trial balance of Detox Ltd.

as on 31st March, 2012:

Particulars Debit Credit
Provision for Current Tax (2010-11) ---- 2,00,000
Advance Tax paid for (2010-11) 1,80,000 -------
Advance tax paid for (2011-2012) 1,00,000 --------
Tax deducted at source (2011-12) 10,000 ------
Profit and Loss A/C (April 1, 2011) ------ 2,00,000
The assessment for the year 2010-11 was finished during the year 2011-12. The total tax liability for that year was
fixed at Rs.2,20,000 and the net amount payable for the year 2010-11 has been paid. The net profit before tax for the
year 2011-12 amounts to Rs. 4,00,000. Assume corporate income tax at 35%. Pass necessary journal entries and
show how items will appear statement of P & L of 2011-12.

Q1) The following are the extracts from the Trial balance of Detox Ltd. as on 31st March, 2012:
Particulars Debit Credit
Provision for Current Tax (2010-11) ---- 2,00,000
Advance Tax paid for (2010-11) 1,80,000 -------
Advance tax paid for (2011-2012) 1,00,000 --------
Tax deducted at source (2011-12) 10,000 ------
Profit and Loss A/C (April 1, 2011) ------ 2,00,000
The assessment for the year 2010-11 was finished during the year 2011-12. The total tax liability for that year was
fixed at Rs.2,20,000 and the net amount payable for the year 2010-11 has been paid. The net profit before tax for the
year 2011-12 amounts to Rs. 4,00,000. Assume corporate income tax at 35%. Pass necessary journal entries and
show how items will appear statement of P & L of 2011-12.

Q1) The following are the extracts from the Trial balance of Detox Ltd. as on 31st March, 2012:
Particulars Debit Credit
Provision for Current Tax (2010-11) ---- 2,00,000
Advance Tax paid for (2010-11) 1,80,000 -------
Advance tax paid for (2011-2012) 1,00,000 --------
Tax deducted at source (2011-12) 10,000 ------
Profit and Loss A/C (April 1, 2011) ------ 2,00,000
The assessment for the year 2010-11 was finished during the year 2011-12. The total tax liability for that year was
fixed at Rs.2,20,000 and the net amount payable for the year 2010-11 has been paid. The net profit before tax for the
year 2011-12 amounts to Rs. 4,00,000. Assume corporate income tax at 35%. Pass necessary journal entries and
show how items will appear statement of P & L of 2011-12.

Q1) The following are the extracts from the Trial balance of Detox Ltd. as on 31st March, 2012:
Particulars Debit Credit
Provision for Current Tax (2010-11) ---- 2,00,000
Advance Tax paid for (2010-11) 1,80,000 -------
Advance tax paid for (2011-2012) 1,00,000 --------
Tax deducted at source (2011-12) 10,000 ------
Profit and Loss A/C (April 1, 2011) ------ 2,00,000
The assessment for the year 2010-11 was finished during the year 2011-12. The total tax liability for that year was
fixed at Rs.2,20,000 and the net amount payable for the year 2010-11 has been paid. The net profit before tax for the
year 2011-12 amounts to Rs. 4,00,000. Assume corporate income tax at 35%. Pass necessary journal entries and
show how items will appear statement of P & L of 2011-12.
Q2) The paid up capital of AB Ltd. consisted of lakhs equity shares of Rs. 10 each and 30 lakhs 10% preference
shares each. Interim dividend at the rate of 10% was paid during the year ended 31st March, 2013. There was a credit
balance of Rs. 1,250 lakh in profit and loss account brought forward from previous year. The net profit before tax
amounted to Rs. 3,200 lakhs for 2012-13. The company pays tax at 35%. The board of directors in its meeting
decided:
(i) To propose preference dividend for the current year.
(ii) To propose final dividend at 20% on equity shares excluding interim dividend.
(iii) To transfer 10% of the net profit to general reserve.
Assuming corporate dividend tax at 16.99%. Pass the necessary journal entries for the above transactions.

Q2) The paid up capital of AB Ltd. consisted of lakhs equity shares of Rs. 10 each and 30 lakhs 10% preference
shares each. Interim dividend at the rate of 10% was paid during the year ended 31st March, 2013. There was a credit
balance of Rs. 1,250 lakh in profit and loss account brought forward from previous year. The net profit before tax
amounted to Rs. 3,200 lakhs for 2012-13. The company pays tax at 35%. The board of directors in its meeting
decided:
(i) To propose preference dividend for the current year.
(ii) To propose final dividend at 20% on equity shares excluding interim dividend.
(iii) To transfer 10% of the net profit to general reserve.
Assuming corporate dividend tax at 16.99%. Pass the necessary journal entries for the above transactions.

Q2) The paid up capital of AB Ltd. consisted of lakhs equity shares of Rs. 10 each and 30 lakhs 10% preference
shares each. Interim dividend at the rate of 10% was paid during the year ended 31st March, 2013. There was a credit
balance of Rs. 1,250 lakh in profit and loss account brought forward from previous year. The net profit before tax
amounted to Rs. 3,200 lakhs for 2012-13. The company pays tax at 35%. The board of directors in its meeting
decided:
(i) To propose preference dividend for the current year.
(ii) To propose final dividend at 20% on equity shares excluding interim dividend.
(iii) To transfer 10% of the net profit to general reserve.
Assuming corporate dividend tax at 16.99%. Pass the necessary journal entries for the above transactions.

Q2) The paid up capital of AB Ltd. consisted of lakhs equity shares of Rs. 10 each and 30 lakhs 10% preference
shares each. Interim dividend at the rate of 10% was paid during the year ended 31st March, 2013. There was a credit
balance of Rs. 1,250 lakh in profit and loss account brought forward from previous year. The net profit before tax
amounted to Rs. 3,200 lakhs for 2012-13. The company pays tax at 35%. The board of directors in its meeting
decided:
(i) To propose preference dividend for the current year.
(ii) To propose final dividend at 20% on equity shares excluding interim dividend.
(iii) To transfer 10% of the net profit to general reserve.
Assuming corporate dividend tax at 16.99%. Pass the necessary journal entries for the above transactions.