Question

Opening Stock ₹ 50,000; Net Sales ₹ 11,00,000; Net Purchases ₹ 6,00,000; Direct

Expenses ₹ 60,000; Administration Expenses ₹ 45,000; Selling & Distribution Expenses ₹

65,000; Loss by fire ₹ 20,000; Closing Stock ₹ 70,000. Calculate Operating Profit.​

Answer 1

Answer:

370,000

Explanation:

sales 1,100,000

purchases (560,000)

Gross Profit 540,000

Direct exp (60,000)

Admn exp (45,000)

Selli exp (65,000)

Net Profit 370,000

For purchaee following formulae is used

opening inventory + purchases - loss in fire - closing inventory. Ansger is the next purchase utlized for operations. or cost of good sold