Question

Divisible profits of a firm are ` 50,000. It paid ` 10,000 as Interest on capitals and ` 5,000 as salary to manager,

interest on drawings were ` 5,000. Net profit earned by the firm is `_______​

Answer 1

net profit earned by the firm 40000

Answer 2

Answer:

Explanation:

Net profit = divisible profits+ interest on capital-interest drawings

               =50000+10000-5000

               =55000

(Managers salary will not be considered as it is a charge against profit and will appear in profit and loss a/c. It will not be written in profit and loss appropriation a/c)

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