Question

Profit before depreciation and the amount of depreciation of Jaipur Pvt. Ltd. for two years are:

Year	Profit before Depreciation	Depreciation
$2013-14$	Rs $(-)20,000$	Rs $15,000$
$2014-15$	Rs $1,00,000$	Rs $20,000$

The amount of divisible profit for the year $2014-15$ is _________.

• A. $Rs.65,000$
• B. $Rs.60,000$
• C. $Rs.85,000$
• D. $Rs.80,000$

Answer 1

The correct option is A $Rs.65,000$

Calculation of 'Divisible Profit' for the year $2014-15$ is
= Rs$1,00,000$ - (Rs$20,000$ + Rs$15,000$)
= Rs$1,00,000-Rs$35,000
= Rs$65,000$