Question

24.
Karikalan of Trichy has a branch at Sengottai. Goods are invoiced to the branch at cost
journal and debtors ledger only. From the information obtained from the branch,
plus 20%. The expenses of the branch are paid from Trichy. The branch keeps sales
prepare Trading and Profit and Loss account of the branch for the year ending 31.3.1985
and show the account of the branch as it would appear in the books of Head Office.
Opening Stock (at invoice price)
Credit Sales
Cash Sales
Receipts from Debtors
Sundry debtors on 31.3.85
Goods received from Head Office
Goods in transit from Head Office on 31.3.85
Expenses paid by the Head Office for the branch
Rs.
12,000
Closing stock (at invoice price)
9,000
20,500
8.750
18,950
4,580
15,000
1,800
5,200
[Madras, B.Com. (PZIA) April 2004; B.Com. Oct. 2001; May 1995]
[Ans: Gross Profit Rs. 14,250 ; Net Profit Rs. 9,050​

Answer 1

Answer:

Gross Profit Rs. 14,250 ; Net Profit Rs. 9,050​

Explanation:

From the above question,

They have given :

Karikalan of Trichy has a branch at Sengottai. Goods are invoiced to the branch at cost journal and debtors ledger only. From the information obtained from the branch, plus 20%. The expenses of the branch are paid from Trichy. The branch keeps sales prepare Trading and Profit and Loss account of the branch for the year ending 31.3.1985 and show the account of the branch as it would appear in the books of Head Office.

Gross Profit:

Formula for Gross Profit

Gross profit=Net sales−CoGS

Net profit is calculated by deducting all company expenses from its total revenue. The result of the profit margin calculation is a percentage – for example, a 10% profit margin means for each $1 of revenue the company earns $0.10 in net profit.

Net Profit = Gross Profit – Expenses

Using the formula one can calculate the net profit margin of Company ABC as 35.55% and Company XYZ as 30%.

Net profit margin (Company ABC) = Net Profit / Net Sales or 80 / 225 = 35.55%

Net profit margin (Company XYZ) = Net Profit / Net Sales or 30 / 100 = 30%

Hence, Company ABC has a higher net profit margin than Company XYZ.

Net Profit = Rs 15,00,000 – Rs 1,00,000 – 30,000 -30,000 = Rs 13,40,000.

Gross Profit Rs. 14,250 ; Net Profit Rs. 9,050​

For more such related questions : https://brainly.in/question/39668421

#SPJ1