Identify the correct sequence to find out profit after tax while preparing comparative income statement.
A. Deduct expenses
B. Find out total revenue by adding other incomes to revenue from operations
C. Find out profit after tax
D. Deduct tax
E. Calculate profit before tax
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → B, A, E, D, C
A comparative statement of profit and loss is built from the top:
(B) Total revenue = revenue from operations + other incomes
(A) Less: expenses
(E) Profit before tax
(D) Less: tax
(C) Profit after tax
NCERT (2026-27 edition):
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