Operating profit earned by M/s Arora & Sachdeva in 2005-06 was Rs 17,00,000.
Its Non-operating incomes were Rs 1,50,000 and Non-operating expenses were Rs. 3,75,000.
Calculate the amount of net profit earned by the firm.

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Solution

Operating profit = (Net Profit + non-operating Expenses - Non-operating Income)
Hence, Net Profit = (Opening 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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Operating profit earned by M/s Arora & Sachdeva in 2005-06 was Rs 17,00,000. Its Non-operating incomes were Rs 1,50,000 and Non-operating expenses were Rs. 3,75,000. Calculate the amount of net profit earned by the firm.

Operating profit earned by M/s Arora & Sachdeva in 2005-06 was Rs 17,00,000.
Its Non-operating incomes were Rs 1,50,000 and Non-operating expenses were Rs. 3,75,000.
Calculate the amount of net profit earned by the firm.