Question

Net Sales during the year ended 31 March, 2015 is Rs. 6,00,000. Gross Profit is 25% on
Cost. Find out Gross Profit and Cost of goods sold.​

Answer 1

Answer:

hope it helps you.

Explanation:

this is the answer

Answer 2

Given:

Net sales=Rs.6,00,000

Gross profit=25% of cost

To find:

Gross profit and the cost of goods sold

Solution:

The gross profit is Rs.1,20,000 and the cost of goods sold is Rs.4,80,000.

We can find the values by following the given steps-

We know that the cost of goods sold is the difference between the net sale and the gross profit.

Cost of goods sold=Net sales- gross profit

Let the cost of goods sold be X.

So, the gross profit=25% of X

On putting the given values,

X=6,00,000-25% of X

X+25% of X=6,00,000

X+25X/100=6,00,000

125X/100=6,00,000

125X=6,00,000×100

X=6,00,000×100/125

X=6,00,000×4/5

X=1,20,000×4

X=4,80,000

The cost of goods sold=Rs.4,80,000

Now, the gross profit=25% of cost of goods sold

=1/4×4,80,000

=Rs.1,20,000

Therefore, the gross profit is Rs.1,20,000 and the cost of goods sold is Rs.4,80,000.