Question

When funds from operation are Rs. $42,000$ and the amount of depreciation on plant and machinery is Rs. $5,000$, what is the amount of net profit?

• A. Rs. $37,000$
• B. Rs. $42,000$
• C. Rs. $47,000$
• D. Cannot be computed

Answer 1

The correct option is A Rs. $37,000$

Fund from operation $=$Rs. $42,000$
Less : Depreciation $=$ Rs. $5,000$
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Net Profit $=$ Rs. $37,000$
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