Question

Q 64 Given:
(1) Purchases 1520000
(ii) Wages and Salaries 210000
(iii) Sales * 2160000
(iv) Opening Stock * 208000, it was 80%
of closing stock
(v) Purchase return 40000.
Gross profit will be:
Ops: A
522000
B.
428400
* 692000
D.
732000​

Answer 1

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Answer 2

Answer: Ops: A 522000

The gross profit of the firm is 5,22,000

Explanation:

Given:
Purchases = 1520000

Wages and Salaries = 210000

Sales = 2160000

Opening Stock = 208000

Opening stock is 80% off the Closing stock

Purchase return = 40000

To Find:

Gross profit of the firm

Solution:

Opening stock = 208000

Given - Opening stock is 80% off the Closing stock

80% = 208000

100% = $208000*\frac{100}{80}$

Closing Stock = 260000

Formula:

Gross profit of the firm = Sales + Closing stock - Opening Stock - Purchases - Wages and salaries + Purchase return

Gross profit of the firm = 2160000 + 260000 - 208000 - 1520000 - 210000 + 40000

Gross profit of the firm = 2460000 - 1938000

Gross profit of the firm = 522000

Conclusion:

The gross profit of the firm is 5,22,000

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