find gross profit ration.opening stock 20000,purchase 35000,purchase return 5000.sales 55000,sales return 5000. closing stock 10000
Answers
Explanation:
opening gross + purchase gross =20000+35000= 55000
available gross - sales gross =55000-55000= 0
purchase return + sales return = 5000+5000 = 10000
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%.