Read the following data given in the books of ABC Ltd and answer the question given below.

What is the change in profit before tax?

₹1,60,000

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