P/l figure required for further mat adjustments

awantika (student) (34 Points)

14 July 2017  

I understand that only specified adjustments has to be made for MAT calculations BUT before that Net Profit should be as per companies act .

NOW in may 17 exam MAT quest - NET PROFIT 95 lakh  was given and one info is given that " Interest on borrowed capital ` 1,00,000 payable to Y, not debited to profit and loss account "

MY QUEST is how institue in its suggested ans says that N.P 95 lakhs is as per companies act , should'nt  first this adjustment be made to make the profit as per companies act .