The gross profit of a firm for the year ended 31.03.2022 was ₹1,14,000. During the year it received a commission of ₹10,000 and paid salaries ₹50,000, rent ₹26,000, interest on loan ₹1,000. There were bad debts of ₹9,000. The operating profit of the firm was:

Correct option is A

Operating Profit = Gross Profit + Operating Incomes – Operating Expenses
Step 1: Gross Profit
= ₹1,14,000
Step 2: Add Operating Income
Commission received = ₹10,000 (Commission is considered operating income if related to regular business activities.)
Revised total = 1,14,000 + 10,000 = ₹1,24,000
Step 3: Less Operating Expenses
· Salaries = ₹50,000
· Rent = ₹26,000
· Bad debts = ₹9,000
These are all operating expenses.
Total operating expenses = 50,000 + 26,000 + 9,000 = ₹85,000
Step 4: Operating Profit
= ₹1,24,000 − ₹85,000 = ₹39,000