Question

Opening Stock Rs 70,000

Closing Stock Rs 60,000

Sales Rs 1,65,000

Sales Return Rs 5,000

Purchase Returns Rs 10,000

The Gross Profit ratio is 25% on cost

The value of purchases will be​

Answer 1

Answer:

1,28,000

Explanation:

Selling price = (Sales - Sales Return)=(1,65,000 - 5,000)=1,60,000

Gross profit = 25% Cost price

                    = 0.25 Cost price

Selling Price = Cost price + Gross Profit

1,60,000 = C.P + 0.25 C.P

1,60,000 =  1.25 C.P

$\frac{1,60,000}{1.25}$ = C.P

C.P = 1,28,000

Hence Purchase = 1,28,000

          Gross Profit = 0.25(1,28,000)

                                = 32,000

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