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

Step-by-step explanation:

This can be formulated as:

Sales - Cost of goods sold = Gross Profit

If sales is Rs.100

Then Gross Profit becomes Rs.25 (25% of sales)

Cost of Goods sold will be Rs.75 (Rs.100-Rs.25)

Cost of goods sols is equal to 75% of sales

Sales =Cost of goods sold/75%

Sales=Rs.100000