Question : Evian Ltd. has a balance in Provision for Tax Account of Rs. 50,000 and Rs. 75,000 as on 31st March, 2019 and 2020 respectively. It made a provision for tax during the year of Rs. 65,000. The amount of tax paid during the year ______-.
Option 1: Rs 65,000
Option 2: Rs 40,000
Option 3: Rs 25,000
Option 4: None of the above
Answer (1)
25th Jan, 2024
Correct Answer: Rs 40,000
Solution : Answer = Rs 40,000
| Provision for tax A/c | |||
| To Cash(Tax paid)(b/f) | 40,000 | By Bal b/d | 50,000 |
| To bal c/d | 75,000 | By Tax charged | 65,000 |
| 1,15,000 | 1,15,000 | ||
Hence, the correct option is 2.
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