Question

Opening stock is 20000,closing stock 18000 purchases 110000,direct expenses 28000 and gross profit is 1/6 on sales. Calculate the amount of sales

Answer 1

Answer:

The amount of Sales is 1,68,000

Explanation:

Given :

• Opening Stock = 20,000
• Closing Stock = 18,000
• Purchases = 1,10,000
• Direct Expenses = 28,000
• Gross Profit is 1/6 on Sales

To find :

• The amount of Sales

Solution :

Net Sales = Cost of Goods Sold + Gross Profit

Gross Profit is 1/6 on Sales

Sales = ??

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses - Closing Stock

Cost of Goods Sold = 20,000 + 1,10,000 + 28,000 - 18,000

Cost of Goods Sold = 1,40,000

Cost of Goods Sold = Net Sales - Gross Profit

Let,

Net Sales = x

So,

Cost of Goods Sold = x - 1/6 on x

1,40,000 = x - 1/6x

$140000=x- \dfrac{ 1 }{ 6 } x$

$140000=\dfrac{5}{6}x$

$\dfrac{5}{6}x=140000$

$x=140000\times \left(\dfrac{6}{5}\right)$

$x=\dfrac{140000\times 6}{5}$

$x=\dfrac{840000}{5}$

$x=168000$

Net Sales = 1,68,000

Gross Profit = 1,68,000 - 1,40,000

Gross Profit = 28,000 = 1/6 on 1,68,000

∴ The amount of Sales is 1,68,000