What is the absolute change in other inc

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Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

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?

Options:

₹4,00,000 (positive)

₹4,00,000 (negative)

₹3,00,000 (positive)

₹3,00,000 (negative)

Correct Answer:

₹4,00,000 (negative)

Explanation:

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)