Question

How much amount will be added while computing Net Profit before Tax?

	01.04.2020	31.03.2021
Provision for Tax	₹ 54,000	₹ 72,900

Tax paid during the year ended 31st March 2021 is ₹ 64,800.

Options

• ₹ 64,800

• ₹ 83,700

• ₹ 45,900

• None of these

Answer 1

₹ 83,700

Explanation:

Dr.	Provision for Tax Account		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Bank A/c (Tax Paid)	64,800	By Balance b/d	54,000
To Balance c/d	72,900	By Statement of Profit and Loss (Provision for tax) (Balance Fig.)	83,700
	1,37,700		1,37,700