Question

Net profit earned by M/s Arora & Sachdeva in 2016-17 was Rs.14,75,000. Its non-operating

incomes were Rs.1,50,000 and non-operating expenses were Rs.3,75,000. Calculate the amount of

Operating profit earned by the firm.

irrelevant answers will be reported ​

Answer 1

Answer:

Calculation of Operating Profit earned by the firm

Explanation:

Operating profit = (Net Profit + non-operating Expenses - Non-operating Income)

Operating Profit = ( 14,75,000 + 3,75,000 - 1,50,000)

= 17,00,000

Hence, Net Profit = (Operating Profit + Non-operating Income - Non-operating Expenditure)

Operating profit (Given) = Rs. 17,00,000

Non-operating income = Rs. 1,50,000

Non-operating expenses = Rs. 3,75,000

Hence, Net profit = 17,00,000+1,50,000 - 3,75,000 = Rs. 14,75,000

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