Question
How is operating profit ascertained?
Cost of revenue from operations = Purchases of stock–in–trade + Change in inventories of stock in trade + Direct expenses.
Operating expenses = Administrative expenses + Selling and distribution expenses.
Operating cost = Cost of revenue from operations + Operating expenses.
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Balance Sheet (Extract) as on
31st March, 2019
| Particulars | Amount ₹ |
| I. EQUITY AND LIABILITIES | |
| 1. Shareholders' funds | |
| (a) Share capital | |
| Equity share capital | 6,00,000 |
| (b) Reserves and surplus | 2,00,000 |
| 2. Non-current liabilities | |
| Long-term borrowings (Debentures) | 6,00,000 |
| 3. Current liabilities | |
| (a) Trade payables | 1,60,000 |
| (b) Other current liabilities | |
| Outstanding expenses | 40,000 |
| Total | 16,00,000 |