Book profit is defined as the profits earned by a company from its activities. It's computed by deducting the business expenses acquired in a specific financial year from the sales income and other profits generated from the sale of goods and services in the same financial year. Book profit is the leftover cash after a company has paid all the expenses and indicated in the profit and loss statement of the business. In simple terms, it’s the cash a company earns within a financial year by selling its goods and services deducted by the expenses for that year.