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Calculate the profits before in terest a...

Calculate the profits before in terest and tax from the following information
Profit after tax= ₹ 1,50,000. Interest.

A

₹ 3,60,000

B

₹ 3,00,000

C

₹ 45,000

D

₹1,05,000

Text Solution

Verified by Experts

The correct Answer is:
A
Firstly, calculate profits after interset but before tax.
Profit before interset but after tax= profit after tax / (1- tax rate) = 1,50,000 ( 1-50%) = ₹ 3,00,000.
Profit before3 interset and tax = profit before
interset but after tax + interset = 3,00,000 + 60,000 = ₹ 3,60,000
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