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SSC Financial and Cost Accounting P-1 QUESTION #9626
Question 1
Gross Profit is Rs. 40,000. Administrative expenses are Rs. 15,000, selling expenses Rs. 5,000, and financial expenses Rs. 5,000. There is also other income of Rs. 2,000. What is the Net Profit?
  • Rs. 15,000
  • Rs. 17,000✔️
  • Rs. 10,000
  • Rs. 12,000
Correct Answer Explanation
Net Profit = Gross Profit – Operating Expenses + Other Income. Operating expenses = 15,000 + 5,000 + 5,000 = Rs. 25,000. Operating Profit = 40,000 – 25,000 = Rs. 15,000. Add other income: 15,000 + 2,000 = Rs. 17,000.