Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

READ THE FOLLOWING INFORMATION AND ANSWER THE GIVEN QUESTION.

ABC Ltd is running an advertising business. Encouraged by substantial profits, company decided to donate ₹1,00,000 to an old age home in the locality where the company had its head office. Following particulars are obtained from the company's books:

PARTICULARS YEAR 2021
Amount (₹)
YEAR 2020
Amount (₹)
Revenue from operations 18,00,000 15,00,000
Other income 60,000 30,000
Expenses 10,40,000 8,70,000
Income Tax 3,00,000 2,50,000

What is % of the change in total revenue?

Options:

19%

20%

20.57%

21.57%

Correct Answer:

21.57%

Explanation:

The correct answer is option 4- 21.57%.

Total revenue 2021 = 18,00,000 + 60,000
                               = ₹18,60,000

Total revenue 2020 = 15,00,000 + 30,000
                               = ₹15,30,000

Change = 18,60,000-15,30,000
             = ₹3,30,000 increase.

% Of change = Change in revenue /Revenue of previous year x 100
% Of change = 3,30,000/15,30,000 x 100
                     = 21.57%