Mr. A started business with a capital of Rs.10 lakhs as a cloth merchant.During the year he purchased goods worth Rs.7,10,000 and sales during the year was Rs.8,42,000. He pays shop rent of Rs.20,000 for the year 2011-12, and other expenses Rs.75,000.Closing stock at the end of the year is Rs.45,000.What is gross profit?

• A. 1,02,000
• B. 82,000
• C. 1,77,000
• D. 1,57,000