Question

From the following figures, calculate Operating Profit:

| Net Profit | Rs.1,00,000 | Rent Received | Rs.10,000 |
| Gain on sales of Machine | Rs.15,000 | Interest on Loans | Rs.20,000 |
| Donation | Rs.2,000 | | |

Answer 1

Calculation of Operating Profit
Operating Profit = Net Profit – Rent Received – Gain of sales of Machine + Interest on Loan + Donation
= 1,00,000 – 10,000 – 15,000 + 20,000 + 2,000
= Rs.97,000
Operating Profit = Rs.97,000