Advanced AccountingMCQICAI Practice / AS 20 Earnings Per ShareQuestion 12307 of 300
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On 1st April 2023, Apex Logistics Ltd. had 1,600,000 equity shares of ₹10 each. On 1st October 2023, it issued 700,000 equity shares for cash at market value. Net profit for the year ended 31st March 2024 was ₹12,500,000. Under AS 20, what is the Basic EPS?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option B — ₹6.41

All Options:

  • A₹7.66
  • B₹6.41 ✓
  • C₹4.91
  • D₹8.91

Detailed Solution & Explanation

Correct Answer: Option **B** (₹6.41) **Statutory Provision & Working Steps (AS 20 Earnings Per Share):** Weighted average shares = 1,600,000 + 700,000 × 6/12 = 1,950,000. Basic EPS = ₹12,500,000 / 1,950,000 = ₹6.41. Hence, the correct answer is Option B.

Key Concepts to Understand

Net Profit

The final profit of a business after deducting all indirect operating expenses, non-operating expenses, and taxes from Gross Profit. It represents the actual earnings available to the owners.

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