Read the following information and answer the questions.
| Particulars | Year 2024 Amount (₹) |
Year 2023 Amount (₹) |
| Revenue from operations | 25,00,000 | 20,00,000 |
| Other income | 1,00,000 | 5,00,000 |
| Employee benefit expenses | 60% of total revenue | 50% of total revenue |
| Other expenses | 10% of employee benefit expenses | 20% of employee benefit expenses |
| Tax rate | 50% | 40% |
What is the absolute change in other income?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹4,00,000 (negative).
Other income in 2024 = 1,00,000
Other income in 2023 = 5,00,000
Change in other income = Other income in 2024 - Other income in 2023
= 1,00,000 - 5,00,000
= 4,00,000 (negative)