Read the following data given in the books of ABC Ltd and answer the question given below.
| Particulars | 2022 | 2021 |
| Revenue from operations | ₹15,00,000 | ₹12,00,000 |
| Other Income | ₹30,000 | ₹20,000 |
| Cost of Materials Consumed | ₹7,00,000 | ₹5,50,000 |
What is the change in profit before tax?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹1,60,000.
IN YEAR 2021-
- Total Revenue= 12,00,000 +20,000
= ₹12,20,000 - Total Expenses = 5,50,000
- Profit = 12,20,000-5,50,000
= ₹6,70,000
IN YEAR 2022-
- Total Revenue = 15,00,000 + 30,000
= ₹15,30,000 - Total Expenses= ₹7,00,000
- Profit = 15,30,000 - ₹7,00,000
= ₹8,30,000
THUS, Change in profit = 8,30,000 - 6,70,000
= ₹1,60,000