Question

if the sales return rs 125000 ans sales 25000. net purchase rs 84000 and gross profit rs.21000 . calculate cost of goods sold​

Answer 1

CORRECT QUESTION :

• ❖ If the sales is Rs. 125000, sales return is Rs. 25000, net purchase is Rs. 84000 and gross profit is Rs. 21000; calculate cost of goods sold.

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SOLUTION :

❒ Given :-

• Sales = Rs. 125000

• Sales Return = Rs. 25000

• Net Purchase = Rs. 84000

• Gross Profit = Rs. 21000

❒ To Find :-

• Cost of goods sold = ?

❒ Required Formulas :-

• ★ Net Sales = Sales - Sales Return

• ★ Cost of goods sold = Net Sales - Gross Profit

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❒ Calculation of Net Sales :-

Substituting the given amounts in the formula we get,

• ★ Net Sales = Sales - Sales Return

➨ Net Sales = Rs. 125000 - Rs. 25000

∴ Net Sales = Rs. 100000

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❒ Calculation of Cost of goods sold :-

Substituting the amounts in the formula we get,

• ★ Cost of goods sold = Net Sales - Gross Profit

➨ Cost of goods sold = Rs. 100000 - Rs. 21000

∴ Cost of goods sold = Rs. 79000 ✪

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ANSWER :

• ❖ If the sales is Rs. 125000, sales return is Rs. 25000, net purchase is Rs. 84000 and gross profit is Rs. 21000; then cost of goods sold is Rs. 79000.

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KNOW MORE :

• ✎ Gross Profit = Net Sales - Cost of goods sold

• ✎ Cost of goods sold = Opening Stock + Net Purchase - Closing Stock

Or,

• ✎ Cost of goods sold = Opening Stock + Net Purchases + Expenses incurred in connection with purchases and manufacture (known as Direct Expenses) - Closing Stock

• ✎ Net Purchases = Purchases - Purchases Return

• ✎ Net Sales = Sales - Sales Return