Question

Calculate Gross Profit on the basis of the following information:
*
Purchases
6.80.000
Retum Outwards
30.000
Carriage Inwards
20.000
Carriage Outwards
15.000
Wages
50.000
3/4 of the goods are sold for 6.00,000.​

Answer 1

BY TRADING ACCOUNT

GROSS PROFIT=(6,80,000-30,000+20,000+50,000)-(4,50,000)

GROSS PROFIT= 7,20,000 - 4,50,000

GROSS PROFIT= 2,70,000

I HOPE THIS WILL HELP YOU MATE

Answer 2

Given:

Purchases=Rs.6,80,000; Return Outwards=Rs.30,000; Carriage Inwards=Rs.20,000; Carriage Outwards=Rs.15,000; Wages=Rs.50,000; 3/4th of the goods are sold for Rs.6,00,000

To find:

The gross profit

Solution:

The gross profit is Rs. 60,000.

We can find the profit by following the given steps-

We know that the gross profit is the difference between the net sales of a business and the cost of goods sold.

The net sales are the amount for which the goods are sold by the business.

The return outwards is the purchases returned of the business.

So, the net purchases=Purchases-return outwards

Net purchases=6,80,000-30,000

=Rs.6,50,000

Now, we will calculate the direct expenses.

The direct expenses=carriage inwards+wages

On putting the values, we get

Direct expenses=20,000+50,000

=Rs.70,000

So, the cost of the goods sold by the business=Net purchases+direct expenses

=6,50,000+70,000

=Rs.7,20,000

For 3/4th of the goods, the cost=3/4 of the cost of goods sold

=3/4×7,20,000

=Rs.5,40,000

It is given to us that 3/4th of the goods are sold for Rs.6,00,000.

The gross profit=Net sales-cost of the goods sold

=6,00,000-5,40,000

=Rs.60,000

Therefore, the gross profit is Rs. 60,000.