Read the following passage and answer the question. A company has a net profit after tax of ₹5,60,000 in the current year 2022. Company write off the bad debts of ₹5,000 during the year. Depreciation charged on fixed assets is ₹40,000. Company sold the investments and a gain of ₹10,000 arise. The following details are given-
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What is the net profit before tax? |
₹5,60,000 ₹5,85,000 ₹6,20,000 ₹6,50,000 |
₹5,85,000 |
The correct answer is option 2- ₹5,85,000 Provision for tax for the 2022 is added back to profit to calculate the profit before tax. |