find gross profit ration.opening stock 20000,purchase 35000,purchase return 5000.sales 55000,sales return 5000. closing stock 10000
Answers
Answer:
Explanation:
Gross Profit will be calculated as under
Opening Stock Rs.20000.00 Sales Rs.55000.00
To Purchases 35000.00 Minus returns 5000.00
Minus returns 5000.00 Net Sales 50000.00
Net Purchases Rs.30000.00 Closing stocks 10000.00
Total Rs.50000.00
Gross Profit Rs.10000.00
Total Rs.60000.00 Total Rs.60000.00
Explanation:
Opening stock = 20,000
Purchase = 35,000
Purchases Return = 5,000
Sales = 55,000
Sales Return = 5,000
Closing stock = 10,000
Gross profit ratio = ???
Solution =
Net sales = Sales - Sales Return
= 55,000 - 5,000
= 50,000
Net sales =50,000
COGS = Opening stock + (Purchase - Purchases Return) - Closing stock
COGS = Opening stock + (Purchase - Purchases Return) - Closing stock
COGS = 20,000 + (35,000 - 5,000) - 10,000
Cost Of Goods Sold = 40,000
Gross Profit =Net sales - Cost Of Goods Sold
= 50,000 - 40,000
= 10,000
Gross Profit = 40,000
Gross Profit Ratio = (Gross Profit/Net sales) × 100
= (10,000/50,000) × 100
= 20%
Gross Profit Ratio = 20%
Hence, Gross Profit Ratio = 20%.