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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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