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?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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