Question

Exe Ltd. has balance in Provision for Tax Account of Rs. 50,000 and Rs. 75,000 as on 31st March, 2024 and 2025 respectively. It made provision for tax during the year of Rs. 65,000. Tax paid during the year was

• A. Rs. 50,000
• B. Rs. 60,000
• C. Rs. 40,000
• D. Rs. 75,000

Hint:

Provision for Tax Formula: \[ \mathrm{Opening\ Balance} + \mathrm{Provision\ Made} - \mathrm{Tax\ Paid} = \mathrm{Closing\ Balance} \]

Answer 1

The Correct Option is C