Calculate gross profit ratio if total sales is ₹ 600000 , sales return ₹ 50000 and cost of goods sold is ₹ 440000?
Answers
Answer:
50000
Explanation:
Solution can be represented as:
Sales= Cost of Goods Sold +Gross Profit
Assuming COGS is Rs.100
Gross Profit will be 1/3 of Rs.100 i.e.33.33
Therefore
Sales =Rs.100+Rs.33.33 i.e. Rs.133.33
If we calculate the Gross Profit on Sales that becomes = GP/Sales*100
=33.33/133.33*100
i.e. Gross Profit will be 25% on sales
Sales= Rs.600000
Gross Profit= 25% of Rs.600000 i.e. Rs.150000
Cost of Goods Sold= Sales-Gross Profit
= Rs.600000-Rs.150000
= Rs.450000
Now, to find out the opening stock, below equation help us:
Cost of Goods Sold= Op Stock+Purchases-Closing Stock
450000=Op Stock+490000-Rs.90000
450000=Op Stock+ Rs.400000
Op Stock = Rs.450000-Rs.400000
Opening Stock =Rs.50000.