Question

From the following balances taken from the books of Simmi and Vimmi Ltd.
for the year ending March 31, 2017, calculate the gross profit.
[tex]
\begin{tabular}{c c}\\
\begin{center}\\
& (Rs.) \\
Closing stock & 2,50,000 \\
Net sales during the year & 40,00,000 \\
Net purchases during the year & 15,00,000 \\
Opening stock & 15,00,000 \\
Direct expenses & 80,000 \\
\end{center}
\end{tabular}
[/tex]

Answer 1

The gross profit is Rs 11,70,000.

Explanation:

Given:

Closing stock Rs 2,50,000.

Net sales during the year Rs 40,00,000.

Net purchases during the year Rs 15,00,000.

Opening stock Rs 15,00,000.

Direct expenses Rs 80,000.

Now, to find the gross profit:

So, to get the gross profit we put formula:

Gross profit = (Closing stock + Net sales) - (Net purchases + opening stock + direct expenses)

$Gross\ profit=(2,50,000+40,00,000)-(15,00,000+15,00,000+80,000)$

$Gross\ profit=42,50,000-30,80,000$

$Gross\ profit=11,70,000.$

Therefore, the gross profit is Rs 11,70,000.