Question

Following are the information:
a. Sales – Rs 450,000
b. GP- 25% on cost
The amount of GP will be _____​

Answer 1

Answer:

Gross Profit is calculated by the below equation:

Gross Profit = Sales - Cost of goods sold

In the given situation, gross profit is 20% on the cost of goods sold.

Hence, assume cost of goods sold is 100, than the sales will be Rs.100+ Rs.20 i.e. Rs.120

Accordingly

Cost of goods sold will be = Rs.150000 * 100

120

Cost of goods sold = Rs. 125000

Therefore Gross Profit = Cost of Goods sold * 20%

Gross Profit = Rs.125000 * 20%

Gross Profit = Rs.250

Answer 2

Answer:

The amount of Gross Profit will be Rs 90,000

Explanation:

Given :

• Sales = Rs 450,000
• Gross Profit = 25 % on Cost

To find :

• The amount of Gross Profit

Solution :

Net Sales = Cost Of Goods Sold + Gross Profit

Let,

Cost Of Goods Sold = x

Net Sales = Cost Of Goods Sold + Gross Profit

$\longrightarrow$ 4,50,000 = x + 25 % of x

$\longrightarrow \: 4,50,000 \: = x \: + \: \dfrac{25}{100} x$

$\longrightarrow$ 4,50,000 = x + 0.25x

$\longrightarrow$ 4,50,000 = 1.25x

$\longrightarrow$ x = 4,50,000 ÷ 1.25x

$\longrightarrow$ x = 3,60,000

Cost Of Goods Sold = Rs 3,60,000

Gross Profit = Net Sales - Cost Of Goods Sold

$\longrightarrow$ 4,50,000 - 3,60,000

$\longrightarrow$ 90,000

Gross Profit = Rs 90,000

∴ The amount of Gross Profit will be Rs 90,000