Question

Revenue from Operations is ₹ 60,00,000; other income is 15% of Revenue from Operations. Expenses are 60% of Revenue from Operations and the tax rate is 40%. Amount of profit after tax will be ______.

Options

• ₹ 14,40,000

• ₹ 19,80,000

• ₹ 13,80,000

• ₹ 16,56,000

Answer 1

Revenue from Operations is ₹ 60,00,000; other income is 15% of Revenue from Operations. Expenses are 60% of Revenue from Operations and the tax rate is 40%. Amount of profit after tax will be ₹ 19,80,000.

Explanation:

15% of Revenue from Operations = `15/100 xx 60,00,000`

= ₹ 9,00,000

Total Revenue = Revenue from Operations + Other Income

= 60,00,000 + 9,00,000

= ₹ 69,00,000

60% of Revenue from Operations = `60/100 xx 50,00,000`

= ₹ 36,00,000

Profit Before Tax = Total Revenue − Total Expenses

= 69,00,000 − 36,00,000

= ₹ 33,00,000

40% Profit Before Tax = `40/100 xx 33,00,000`

= ₹ 13,20,000

= 33,00,000 − 13,20,000

= ₹ 19,80,000