Profit before interest and tax-

Given Net Profit After Tax (PAT) = Rs. 1,50,000 and Tax = Rs. 50,000, we need to work backwards to find Profit Before Interest and Tax (PBIT).

Finding Profit Before Tax:

Net Profit After Tax = Profit Before Tax - Tax

Rs. 1,50,000 = Profit Before Tax - Rs. 50,000

Profit Before Tax = Rs. 1,50,000 + Rs. 50,000 = Rs. 2,00,000

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Finding Interest on Debentures:

Interest on 10% Debentures = $\frac{10}{100} \times 4,00,000$ = Rs. 40,000

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Finding Profit Before Interest and Tax:

Profit Before Tax = Profit Before Interest and Tax - Interest

Rs. 2,00,000 = PBIT - Rs. 40,000

PBIT = Rs. 2,00,000 + Rs. 40,000 = Rs. 2,40,000

Note: Interest on debentures is deducted before arriving at profit, while preference dividend (12% on Preference shares) is an appropriation of profit and not deducted while calculating PBIT.

Answer: Option 3 - Rs. 2,40,000