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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


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 17th 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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