Revenue from operation ₹8,00,000 gross profit ratio 32%; indirect expenses 10% of gross profitand income tax 40%. What will be the amount of profit after tax?(A) ₹1,38,240(B) ₹1,02,400(C) ₹92,160(D) ₹1,53,600

To calculate the profit after tax, we need to follow these steps:

Step 1: Calculate the gross profit. Gross profit = Revenue from operation - Cost of goods sold Given that the revenue from operation is ₹8,00,000 and the gross profit ratio is 32%, we can calculate the cost of goods sold as follows: Gross profit ratio = (Gross profit / Revenue from operation) * 100 32% = (Gross profit / ₹8,00,000) * 100 Gross profit = (32/100) * ₹8,00,000

Step 2: Calculate the indirect expenses. Indirect expenses = 10% of gross profit Indirect expenses = (10/100) * Gross profit

Step 3: Calculate the taxable income. Taxable income = Gross profit - Indirect expenses

Step 4: Calculate the income tax. Income tax = 40% of taxable income Income tax = (40/100) * Taxable income

Step 5: Calculate the profit after tax. Profit after tax = Gross profit - Indirect expenses - Income tax

Now, let's calculate the profit after tax using the given values: Gross profit = (32/100) * ₹8,00,000 Indirect expenses = (10/100) * Gross profit Taxable income = Gross profit - Indirect expenses Income tax = (40/100) * Taxable income Profit after tax = Gross profit - Indirect expenses - Income tax

By substituting the values, we get: Gross profit = (32/100) * ₹8,00,000 = ₹2,56,000 Indirect expenses = (10/100) * ₹2,56,000 = ₹25,600 Taxable income = ₹2,56,000 - ₹25,600 = ₹2,30,400 Income tax = (40/100) * ₹2,30,400 = ₹92,160 Profit after tax = ₹2,56,000 - ₹25,600 - ₹92,160 = ₹1,38,240

Therefore, the amount of profit after tax is ₹1,38,240 (option A).