Question

Find out Gross Profit from the following by preparing Trading A/C Sales – Rs. 5 lakhs Opening Stock – Rs. 20000 Closing Stock – Rs. 50000 Purchases – Rs. 80000​

Answer 1

Answer

Gross profit:4,50,000

Explanation:

Trading debit side

Opening stock - 20000

Purchase - 80000

Trading Credit Side

Sales - 500000

closing stock - 50000

Total debit = 100000

Total credit = 550000

credit - debit

550000 - 100000

so gross profit is 450000

Answer 2

Explanation:

Given:

• Sales – Rs. 5 lakhs
• Opening Stock – Rs. 20,000
• Closing Stock – Rs. 50,000
• Purchases – Rs. 80,000

To find :

• Gross Profit

Solution :

Gross Profit = Net Sales + Closing Stock - (Opening Stock + Purchases)

⇒ 5,00,000 + 50,000 - (20,000 + 80,000)

⇒ 5,50,000 - 1,00,000

⇒ 4,50,000

Gross Profit = Rs. 4,50,000

★ Trading A/C :

(Refer the attachment).