Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › A firm earns Rs 50,000 before depreciation and t…
A firm earns Rs 50,000 before depreciation and tax and charges Rs 10,000 depreciation. Profit before tax?
ARs 60,000
BRs 40,000
CRs 50,000
DRs 5,000
Answer & Solution
Correct answer: B. Rs 40,000
Depreciation is deducted from profit before tax, so 50,000 minus 10,000 leaves 40,000.
Related questions
Depreciation of a machine is debited to which statement?Which feature must a depreciable asset have?Which asset type is depreciated under the depreciation rules, in line with AS-6?A reserve may be set up to meet which future need?Making an excessive provision for doubtful debts may result in what?Which of these can build a secret reserve?Charging higher depreciation than required creates which kind of reserve?A secret reserve differs from an ordinary reserve because it does what?