= Rs. 19,500

= Rs. , Test Your Understanding - II Choose the correct option in the following questions : . The financial statements consist of: (i) Trial balance (ii) Profit and loss account (iii) Balance sheet (iv) (i) & (iii) (v) (ii) & (iii) . Choose the correct chronological order of ascertainment of the following profits from the profit and loss account : (i) Operating Profit, Net Profit, Gross Profit (ii) Operating Profit, Gross Profit, Net Profit (iii) Gross Profit, Operating Profit, Net Profit (iv) Gross Profit, Net Profit, Operating Profit . While calculating operating profit, the following are not taken into account. (i) Normal transactions (ii) Abnormal items (iii) Expenses of a purely financial nature (iv) (ii) & (iii) (v) (i) & (iii) . Which of the following is correct : (i) Operating Profit = Operating profit – Non-operating expenses – Non-operating incomes (ii) Operating profit = Net profit + Non-operating Expenses + Non-operating incomes (iii) Operating profit = Net profit + Non-operating Expenses – Non-operating incomes (iv) Operating profit = Net profit – Non-operating Expenses + Non-operating incomes Illustration Following balance is extracted from the books of a trader ascertain gross profit, operating profit and net profit for the year ended March , . , , , Sales return , Purchases return Rent Stationary and printing , Misc. expenses Travelling expenses Advertisement , Commission paid Office expenses , , Profit on sale of investment Depreciation Dividend on investment , Loss on sale of old furniture Closing stock (March , ) valued at Rs. , Trading and Profit and Loss Account for the year ended March , Expenses/Losses Revenues/Gains , , , Less : Sales return ( , ) , Less: Purchases return ( ) , Closing stock , Gross profit c/d , , , Rent Gross profit b/d , Stationary and printing , Misc. expenses Travelling expenses Advertisement expenses , Commission paid Office expenses , Depreciation Operating profit c/d , , , Loss on sale of old furniture Operating profit b/d , Net Profit (transferred to capital , Profit on sale of investment account) Dividend on investment , , ,