The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs 50,000 and Rs 65,000. If taxed paid during the current year amounted to Rs 70,000 then amount charge from Profit and Loss Account will be:

The correct answer is A. Rs 55,000.

The amount charged from Profit and Loss Account is the difference between the current year’s provision for taxation and the tax paid during the current year. In this case, the current year’s provision for taxation is Rs 65,000 and the tax paid during the current year is Rs 70,000. Therefore, the amount charged from Profit and Loss Account is Rs 65,000 – Rs 70,000 = Rs 55,000.

Option B is incorrect because it is the total of the current year’s provision for taxation and the tax paid during the current year. Option C is incorrect because it is the difference between the previous year’s provision for taxation and the tax paid during the current year. Option D is incorrect because it is the sum of the current year’s provision for taxation, the tax paid during the current year, and the previous year’s provision for taxation.