Question

If the rate of G.P on sale is 20% and cost of goods,
sold is Rs. 1,00,000, then amount of G.P will be
equal to​

Answer 1

Cost of goods sold is ₹100000

Gross profit is 20% on sales

Let the sales be X

Gross profit = Sales - COGS

20% of X = X - ₹1,00,000

20/100× X = X - ₹1,00,000

X/5 = X - ₹100000

X/5 - X = ₹100000

4X/5 = ₹100000

4X = ₹500000

X = ₹125000

Now, we will calculate the Gross profit on sales

G.P = 20% of ₹125000

G.P = 20/100× ₹125000

G.P = ₹25000