IndigoLearn

Forums

Back

Cash flow statement

Accountancy

In question just netprofit is mentioned whether net profit shall be considered as before tax or after tax?if we consider it as after tax then in the solution only the tax is added nd y dividend is not included in net profit aftetax to get net profit before tax

Ujwal Reddy

CA Inter

★ 7K+

13-Apr-23 20:15

357

Answers (1)

Best Answer

Net profit is always assumed to be after tax as per P&L unless mentioned otherwise. Dividend is not debited to P&L and hence you do not add back.

CA Suraj Lakhotia

Admin

13-Apr-23 20:42