READ THE FOLLOWING INFORMATION AND ANSWER THE GIVEN QUESTION.
ABC Ltd is running an advertising business. Encouraged by substantial profits, company decided to donate ₹1,00,000 to an old age home in the locality where the company had its head office. Following particulars are obtained from the company's books:
| PARTICULARS | YEAR 2021 Amount (₹) |
YEAR 2020 Amount (₹) |
| Revenue from operations | 18,00,000 | 15,00,000 |
| Other income | 60,000 | 30,000 |
| Expenses | 10,40,000 | 8,70,000 |
| Income Tax | 3,00,000 | 2,50,000 |
What is the % of change in revenue from operations and in what direction?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 20% increase.
Change in revenue from operations= 18,00,000-15,00,000
= ₹3,00,000(increase)
% Of change = Change in revenue from operations /Revenue of operations of previous year x 100
= 3,00,000/15,00,000 x 100
= 20%
Thus, there is an increase of 20%.