Question

Sales during the year ended 31st March ,2021 was  12,00,000 and return inward was 2,00,000.Gross profit is 25% on cost .Find out Gross Profit and Cost of goods sold.​

Answer 1

Explanation:

12,00,000 - 2,00,000 = 10,00,000

Sales = 10,00,000

Suppose,

Cost = 100

G.p. = 25

Sales = 125

100/125 × 10,00,000

8,00,000

Cost of goods sold= 8,00,000

G.p. = 10,00,000 - 8,00,000

G.p. =2,00,000

Hence,

Cost of goods sold= 8,00,000

Gross Profit = 2,00,000

Answer 2

Explanation:

Net Sales = 12,00,000 - 2,00,000

= 10,00,000

Net Sales = 10,00,000

★ According to the Question :

Rate of Gross Profit = 25% on Cost of Goods Sold

25/100 = 1/4

Means,

Gross Profit = 20% on Sales

20/100 = 1/5

= 10,00,000 × (1/5)

= 2,00,000

Gross Profit = 2,00,000

Cost of goods sold = Net Sales - Gross Profit

= 10,00,000 − 2,00,000

= 8,00,000

Cost of goods sold = 8,00,000

Therefore,

Gross Profit is 2,00,000 and Cost of goods sold is 8,00,000.