Question

Opening stock Rs 10000
Closing stock Rs 6000
Purchase Rs 5000
Gross profit 10% of sales
(how to solve)​

Answer 1

Answer:

Sales = ₹10,000

Gross profit = ₹1,000

Explanation:

The first step we need to do here is find the Cost of Goods Sold (COGS)

COGS = Opening Stock + Net purchases - Closing Stock

          = 10,000 + 5,000 - 6,000  = ₹9,000

Gross profit is 10% on sales can be written as 10% on (COGS + Gross profit)

This implies that 10% on sales is 1/9 on cost

How?

Ans: COGS + GP = Net Sales

We know that GP = $\frac{10}{100}$ on sales

This can be written as  $\frac{10}{100}$ on (GP + Sales)

Therefore we get the previous equation by substituting the value of COGS and Net sales in the formulae for each other.

By substituting the values we get GP as ₹1,000 and Sales as ₹10,000

Hope this helps