Read the following information and answer the following questions.

Net profit after tax = ₹6,50,000
12.5% debentures = ₹8,00,000
Income tax = 50%
Fixed assets at cost = ₹24,60,000
Depreciation reserve = ₹4,60,000
Current assets = ₹15,00,000
Current liabilities = ₹7,00,000
Capital employed = ₹28,00,000

Calculate the Net profit before interest and tax from the above information.

₹14,00,000

The correct answer is option 3- ₹14,00,000.

Net profit after tax = ₹6,50,000
Tax rate = 50%
Net profit before tax = 6,50,000 X100/50
                                 = ₹13,00,000

Interest = 8,00,000 X 12.5/100
              = ₹1,00,000

So, net profit before interest and tax = 13,00,000 + 1,00,000
                                                           = ₹14,00,000