Question

Opening stock Rs.1,20,000,Purchases Rs.2,80,000,Closing stock Rs.80,000,Sales Rs.400,000.The percentage of gross profit on sales is​

Answer 1

Answer:

Gross profit=( Sale+ Closing stock)-(opening stock+ Purchase)

= (400000+80000)-(120000+280000)

= 480000-400000

= 80000

GP Ratio= Gross profit/sale*100

= 80000/400000*100

= 20%