Question

Particulars	1-4-2022	31-3-2023
Provision for Tax	₹ 10,000	₹ 25,000

Tax paid during the year ended 31^st March, 2023 was ₹ 15,000. While calculating Net Profit before Tax and Extra ordinary items, the amount of provision for tax to be added is ______.

पर्याय

• ₹ 30,000

• ₹ 25,000

• ₹ 10,000

• ₹ 15,000

Answer 1

Tax paid during the year ended 31^st March, 2023 was ₹ 15,000. While calculating Net Profit before Tax and Extra ordinary items, the amount of provision for tax to be added is ₹ 30,000.

Explanation:

Dr.	Provision for Taxation A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Bank A/c	15,000	By Balance b/d	10,000
To Balance c/d	25,000	By Profit and Loss A/c (Bal. fig) (Provision made)	30,000
	40,000		40,000