Question

If cash sales Rs 90000 and credit sales rs 210000 and proprietor charged profit 25% on cost.CalculAte the gross profit.

Answer 1

Total Sales = Rs.90,000 + Rs.2,10,000

                  = Rs.3,00,000

Total Sales = (Cost + Cost* 25%)

Rs.3,00,000 = Cost( 1 + 25%)

Rs.3,00,000 = Cost( 1.25)

Cost = 3,00,000/1.25

Cost = Rs.2,40,000

Gross Profit = Sales - Cost of Goods Sold

                   = Rs.3,00,000 - Rs.2,40,000

                    = Rs.60,000