Question

Cost Of Goods Sold=Rs 200000
Gross Profit On=Cost 25%
Salary= 15000 Rs.
Rent =Rs 7000
Baddebt=Rs 1500
Drwaings= Rs 2000
Creditors= Rs 2500
Net Profit=?​

Answer 1

Answer:

26500

Explanation:

Gross profit is 25% of cost.

cost os 200000

hence GP is 50000

from GP, we deduct salary 15000, rent 7000 and bad debt 1500 and the result is net profit.

hence net profit is 50000-15000-7000-1500=26500

drawings and creditors are balance sheet items hence not covered in above calculation.