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Question
Revenue from Operations is ₹ 50,00,000, other income is 20% of Revenue from Operations and Expenses are 50% of Revenue from Operations. Amount of profit before tax will be ______.
Options
₹ 35,00,000
₹ 30,00,000
₹ 25,00,000
₹ 45,00,000
MCQ
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Solution
Revenue from Operations is ₹ 50,00,000, other income is 20% of Revenue from Operations and Expenses are 50% of Revenue from Operations. Amount of profit before tax will be ₹ 35,00,000.
Explanation:
20% of Revenue from Operations = `20/100 xx 50,00,000`
= ₹ 10,00,000
Total Revenue = Revenue from Operations + Other Income
= 50,00,000 + 10,00,000
= ₹ 60,00,000
50% of Revenue from Operations = `50/100 xx 50,00,000`
= ₹ 25,00,000
Profit Before Tax = Total Revenue − Total Expenses
= 60,00,000 − 25,00,000
= ₹ 35,00,000
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