Question

Calculate gross profit from the following
Opening stock 25,000
Freight and cartage 10,000
closing stock 15,000
other incomes 20,000
purchases 2,50,000
sales 4,00,000
operating expenses 40,000​

Answer 1

Answer:

Given :

• Opening Stock - 25,000

• Freight and cartage - 10,000

• Closing stock - 15,000

• Other incomes 20,000

• Purchases - 2,50,000

• Sales - 4,00,000

To Find :

Gross Profit

Solution :

Opening Stock + Freight and cartage + Purchases - Sales - Closing Stock - Other incomes = Gross Profit

⟶ 25,000 + 10,000 + 2,50,000 - 4,00,000 - 15,000 - 20,000

⟶ 35,000 + 2,50,000 - 4,00,000 - 15,000 - 20,000

⟶ 2,85,000 - 4,00,000 - 15,000 - 20,000

⟶ 4,00,000 - 2,85,000 - 15,000 - 20,000

⟶ 1,15,000 - 15,000 - 20,000

⟶ 1,00,000 - 20,000

⟶ 80,000

∴ Gross Profit = 80,000

( Operating Expenses will not include to find Gross profit )

MORE :

• Gross Profit = Net sales - Cost of Goods

Sold

• Net sales = Gross Sales - Sales Return

• Net Purchases = Gross Purchase -

Purchase Return.