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Question

Revenue from operations = Rs. 1,00,000,
Finance cost = Rs. 5,000,
Cost of materials consumed = Rs. 15,000.
is the amount of profit before tax.

A
Rs. 1,15,000
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B
Rs. 1,00,000
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C
Rs. 80,000
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D
Rs.1,20,000
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Solution

The correct option is C Rs. 80,000
Profit before tax
= Revenue from operations - Finance cost - Material consumed
= 1,00,000 - 5,000 - 15,000 = Rs 80,000

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