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Home Questions T92BYXFABE
Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

Identify the correct sequence to find out 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:

Options:

E, B, A, D, C

B, A, E, D, C

B, E, A, C, D

E, C, B, A, D

Correct Answer:

B, A, E, D, C

Explanation:

Comparative income statement is shown as above.

Particulars

2015-16

2016-17

Absolute Increase(+)

or Decrease(–)

Percentage Increase(+)

or Decrease(–)

 

(Rs.)

(Rs.)

(Rs.)

%

I.  Revenue from operations

60,00,000

75,00,000

15,00,000

25.00
  1. Add: Other incomes

1,50,000

1,20,000

30,000

20.00
  1. Total Revenue I+II

61,50,000

76,20,000

14,70,000

23.90
  1. Less:Expenses

44,00,000

50,60,000

6,60,000

15.00

Profit before tax

17,50,000

25,60,000

8,10,000

46.29
  1. Less: Tax

6,12,500

10,24,000

4,11,500

67.18

Profit after tax

11,37,500

15,36,000

3,98,500

35.03

 

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