Question

Operating profit earned by M/s Arora and Sachdeva in 2016-17 was ₹ 17,00,000. Its non-operating incomes were ₹ 1,50,000 and non-operating expenses were ₹ 3,75,000. Calculate the amount of net profit earned by the firm.

Answer 1

Net Profit = Operating Profit + Non-operating Income – Non-operating Expenses

= 17,00,000 + 1,50,000 – 3,75,000

= ₹ 14,75,000

Net profit earned by M/S Arora and Sachdeva in 2016 – 17 is ₹ 14,75,000.