Question

1 point
Q20. Revenue from operations
Rs.4,00,000; Cost of Revenue from
Operations 60% of Revenue from
operations; Operating Expenses Rs.
30,000 and rate of income tax is
40%. What will be the amount of
profit after tax ?*
RS. 64,000
RS.78,000
RS. 52,000
RS. 96,000​

Answer 1

profit = 400000-240000-30000-52000

=4000000-322000

= 78000

Answer 2

The amount of profit after tax is Rs. 78,000.

Given:

Revenue from operations= Rs. 4,00,000

Cost of revenue from operations= 60% of Rs. 4,00,000

Operating expenses= Rs. 30,000

Tax rate= 40%

To find:

Profit after tax

Solution:

We can follow a few simple steps to find the solution-

We know that Profit after tax is calculated by finding the difference between incomes and expenses and then excluding the amount of tax.

We will first calculate the profit before tax.

Profit before tax= Revenue from operations - the cost of revenue from operations - operating expenses

= 4,00,000- 3×4,00,000/5- 30,000

= 4,00,000 - 2,40,000- 30,000

= Rs. 1,30,000

Now, Tax is 40% of profit before tax.

Amount of tax= 4×1,30,000/10

=52,000

Profit after tax= Profit before tax- tax

= 1,30,000- 52,000

= Rs. 78,000

Therefore, the amount of profit after tax is Rs. 78,000.