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    Question

    TRP Ltd. recorded operating profit of Rs.100,000, tax

    of Rs.17000, interest of Rs.34,000 and dividends of Rs.5000. What is the company’s net profit after tax?
    A Rs.66,000 Correct Answer Incorrect Answer
    B Rs.61,000 Correct Answer Incorrect Answer
    C Rs.44,000 Correct Answer Incorrect Answer
    D Rs.83,000 Correct Answer Incorrect Answer
    E Rs.49,000 Correct Answer Incorrect Answer

    Solution

    Net profit after tax = Operating profits – Interest – tax                              = 100,000 – 34,000 – 17,000                              = Rs.49,000 Note – dividend is paid after the calculation of net profit. It is an appropriation of profits.

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