X purchased merchandise worth Rs. 1, 00, 000 and sold 60% for Rs. 90, 000 and sold 40% of the remaining for Rs. 60, 000 and met operating expenses of Rs. 10, 000. He counted operating profit as Rs. 40, 000. He has violated

Let's verify the calculation: Total purchases = Rs. 1,00,000 (COGS). First sale: 60% of goods sold for Rs. 90,000. Second sale: 40% of remaining 40% = 16% of original sold for Rs. 60,000. Total sales = Rs. 90,000 + Rs. 60,000 = Rs. 150,000. Operating expenses = Rs. 10,000. Operating profit = Sales - COGS - Operating expenses = 150,000 - 100,000 - 10,000 = Rs. 40,000. The calculation is correct and follows proper accounting principles - expenses are matched to the period, unsold inventory remains as asset at cost. Therefore, no principle has been violated.