Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

While Preparing a Comparative Statement of Profit and Loss, the following information was available. Calculate the rate of tax from this.
Profit before Tax 31.3.2021 = ₹280000
Profit after Tax 31.3.2021 = ₹168000

Options:

20%

30%

40%

10%

Correct Answer:

40%

Explanation:

TAX= 280000-168000= ₹112000
Rate of tax= 112000/280000*100=  40%