Question

find cost of goods soldand gross profit?
opening stock=12000
purchases=117000
direct expenses=2200
closing stock=7500
sales =142000
return outwards=7500​

Answer 1

ANSWER :

• ❖ If Opening Stock is Rs. 12,000; Purchases is Rs. 1,17,000; Direct Expenses is Rs. 2,200; Closing Stock is Rs. 7,500; Sales is Rs. 1,42,000 and Return Outwards is Rs. 7,500; then Cost of Goods Sold is Rs. 1,16,200 and Gross Profit is Rs. 25,800.

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SOLUTION :

❒ Given :-

• Opening Stock = Rs. 12,000

• Purchases = Rs. 1,17,000

• Direct Expenses = Rs. 2,200

• Closing Stock = Rs. 7,500

• Sales = Rs. 1,42,000

• Return Outwards = Rs. 7,500

❒ To Calculate :-

• Cost of Goods Sold = ?

• Gross Profit = ?

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❒ Note :-

• In the question, only Return omOutwards is given which is related to purchase, i.e., to calculate Net Purchase, Return Outwards is deducted from the total Purchase. In the same way, to calculate Net Sales, Return Inwards is deducted from the total sales. But as the amount of Return Inwards is not gievn, we will consider the amount of Sales as Net Sales while calculating Gross Profit.

❒ Required Formulas :-

• $\dag \: \: \underline{\boxed{\sf{Cost \: of \: Goods \: Sold = Ope ning\: Stock + Net \: Purchase + Direct \: Expenses - Closing \: Stock}}}$

• $\dag \: \: \underline{ \boxed{ \sf{ \: Gross \: \: Profit = Net \: \: Sales - Cost \: \: of \: \: Goods \: \: Sold \: }}}$

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❒ Calculation of Cost of Goods Sold :-

Given that,

• Purchases = Rs. 1,17,000

• Return Outwards = Rs. 7,500

∴ Net Purchases = Rs. 1,17,000 - Rs. 7,500

➨ Net Purchases = Rs. 1,09,500

Here,

• Opening Stock = Rs. 12,000

• Net Purchases = Rs. 1,09,500

• Direct Expenses = Rs. 2,200

• Closing Stock = Rs. 7,500

Using the formula of Cost of Goods Sold, we get,

• ★ Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses - Closing Stock

➜ Cost of Goods Sold = Rs. 12,000 + Rs. 1,09,500 + Rs. 2,200 - Rs. 7,500

➜ Cost of Goods Sold = Rs. 1,23,700 - Rs. 7,500

∴ Cost of Goods Sold = Rs. 1,16,200

• Hence, Cost of Goods Sold is Rs. 1,16,200.

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❒ Calculation of Gross Profit :-

Here,

• Net Sales = Rs. 1,42,000

• Cost of Goods Sold = Rs. 1,16,200

Using the formula of Gross Profit, we get,

• ★ Gross Profit = Net Sales - Cost of Goods Sold

➜ Gross Profit = Rs. 1,42,000 - Rs. 1,16,200

∴ Gross Profit = Rs. 25,800

• Hence, the Gross Profit is Rs. 25,800.