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Question -

Operating profit earned by M/s Arora and Sachdeva in 2016-17 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.



Answer -

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

= 17,00,000 + 1,50,000 – 3,75,000

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

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