Question

Question 3.
From the following information determine Gross Profit for the year ended 31st March, 2018.

Answer 1

Gross Profit = 45,000

Explanation:

To Opening Stock     25000            By   Sale                 190000

To Purchase             1,40,000           By  Closing Stock   30000

To Freight                    10,000                

To Gross Profit            45,000

 

Answer 2

The gross profit for the year ended 31st March, 2018 is ₹ 45,000.

Explanation:

Given:

Opening stock = ₹ 25,000.

Freight and packing = ₹ 10,000.

Sales = ₹ 1,90,000.

Goods purchased = ₹ 1,40,000.

Closing stock = ₹ 30,000.

Packing expenses on sales = ₹ 6,000.

Now, to determine the gross profit.

So, to get the gross profit we put formula:

Gross profit = (Closing stock + Sales) - (Opening stock  + Freight and packing + goods purchased)

$Gross\ profit=(30,000+1,90,000)-(25,000+10,000+1,40,000)$

$Gross\ profit=2,20,000-1,75,000$

$Gross\ profit=45,000.$

Therefore, the gross profit for the year ended 31st March, 2018 is ₹ 45,000.