Question:

Calculate the amount of Profit after Tax if:
• Revenue from Operations: 4,00,000
• Cost of Revenue from Operations: 20%20\% of Revenue from Operations
• Tax rate: 50%50\%

Updated On: Mar 30, 2025
  • 80000
  • 320000
  • 160000
  • 200000
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is C

Solution and Explanation

Calculate the Cost of Revenue from Operations: Cost of Revenue from Operations=20%×4,00,000=0.2×4,00,000=80,000 \text{Cost of Revenue from Operations} = 20\% \times 4,00,000 = 0.2 \times 4,00,000 = 80,000  Calculate the Profit before Tax: Profit before Tax=Revenue from OperationsCost of Revenue from Operations \text{Profit before Tax} = \text{Revenue from Operations} - \text{Cost of Revenue from Operations} =4,00,00080,000=3,20,000 = 4,00,000 - 80,000 = 3,20,000 Calculate the Tax Amount: Tax=50%×Profit before Tax=0.5×3,20,000=1,60,000 \text{Tax} = 50\% \times \text{Profit before Tax} = 0.5 \times 3,20,000 = 1,60,000 Calculate Profit after Tax: Profit after Tax=Profit before TaxTax=3,20,0001,60,000=1,60,000 \text{Profit after Tax} = \text{Profit before Tax} - \text{Tax} = 3,20,000 - 1,60,000 = 1,60,000 Thus, the amount of Profit after Tax is 1,60,000.

Was this answer helpful?
0
0

Top Questions on Profit and Loss Account

View More Questions