Question

Q. Sales Rs. 3,00,000, Purchases Rs. 2,10,000, Wages Rs. 40,000, Opening stock Rs. 10,000 and Closing stock was Rs. 20,000. What was the Gross Profit?

Options~

A) Rs. 70,000
B) Rs. 60,000
C) Rs. 80,000
D) Rs. 50,000​

Answer 1

Answer:

B) Rs. 60,000

Gross Profit = Rs. 60,000

Explanation:

Given :

Sales = Rs. 3,00,000

Purchases = Rs. 2,10,000

Wages = Rs. 40,000

Opening stock = Rs. 10,000

Closing stock = Rs. 20,000

To find :

Gross Profit

Solution :

Sales = Rs. 3,00,000

Cost of Goods sold = ?

$\boxed{\sf{COGS= Ope.ning \: Stock + Purchases + Wages - Closing \: Stock}}$

$\sf{\longrightarrow} \: 10,000 + 2,10,000 + 40,000 - 20,000$

$\sf{\longrightarrow} \: 2,40,000$

Cost Of Goods Sold = Rs. 2,40,000

$\boxed{\sf{Gross \: Profit = Net \: Sales - Cost \: Of \: Goods \: Sold}}$

$\sf{\longrightarrow} \: 3,00,000 - 2,40,000$

$\sf{\longrightarrow} \:60,000$

∴ Gross Profit = Rs. 60,000

Answer 2

Given that :-

Sales is ₹ 300000

Purchases are ₹ 210000

Wages area ₹ 10000

Closing stock was ₹ 20000

To find :-

Gross profit is how much ?

Solution :-

Before we find gross profit, we shall find the cost of goods which are sold.

Cost of Goods Sold = Opening Stock + Purchases + Closing Stock

Cost of Goods sold = 10000 + 210000 + 20000

Cost of Goods sold = 240000

Cost of goods sold is ₹ 240000

Now, let's find the gross profit by subtracting cost of goods that are sold from the sales.

Gross profit = Sales - Cost of goods sold

Gross profit = 300000 - 240000

Gross profit = 60000

Gross profit is ₹ 60000