Find out the net income from the following figures related to the year 2021 opening stock 10000 purchase 25000 direct expenses 1000 closing stock 5000 operating expenses 2000 sales 40000
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Explanation:
Closing stock = (Opening stock + purchases + gross profit) - sales
= (1,00,000 + 6,00,000 + 1,00,000)- 5,00,000
= 8,20,000 - 5,00,000
= 3,00,000
Working note:- Calculation of gross profit
(Gross profit is 25% of cost because we don't have cost we will calculate it with the help of sales)
If cost is 100 gross profit is 25% of cost then sale will be Gross profit + cost
Hence 100 +25 = 125
therefore,
gross profit = 25/125 x 5,00,000
= 1,00,000
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