Question

sales repees 2,00,000 purchase rupees 1,30,000 wages rupees 18,000 closing stock rupees 22,000 opening stock rupees 20,000 what was the gross profit?​

Answer 1

ANSWER :

• ❖ If Sales is Rs. 2,00,000; Purchases is Rs. 1,30,000; Wages is Rs. 18,000; Closing Stock is Rs. 22,000 and Opening Stock is Rs. 20,000; then Gross Profit is Rs. 54,000.

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SOLUTION :

❒ Given :-

• Sales = Rs. 2,00,000

• Purchases = Rs. 1,30,000

• Wages = Rs. 18,000

• Closing Stock = Rs. 22,000

• Opening Stock = Rs. 20,000

❒ To Calculate :-

• Gross Profit = ?

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❒ Note :-

• ✎ To calculate Gross Profit from the given particulars, first we have to calculate Cost of Goods Sold.

• ✎ After calculating Cost of Goods Sold, gross profit can be calculated.  

• ✎ As Sales Return and Purchase Return are not given, we will consider the amount of Sales as Net Sales and amount of Purchase ad Net Purchase.

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❒ Required Formulas :-

• $\dag \: \: \underline{\boxed{\sf{Cost \: of \: Goods \: Sold = Ope ning\: Stock + Net \: Purchase + Direct \: Expenses - Closing \: Stock}}}$

• $\dag \: \: \underline{ \boxed{ \sf{ \: Gross \: \: Profit = Net \: \: Sales - Cost \: \: of \: \: Goods \: \: Sold \: }}}$

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❒ Calculation of Cost of Goods Sold :-

Here,

• Opening Stock = Rs. 20,000

• Net Purchase = Rs. 1,30,000

• Direct Expenses (Wages) = 18,000

• Closing Stock = Rs. 22,000

Using the formula of Cost of Goods Sold, we get,

• ★ Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses- Closing Stock

➜ Cost of Goods Sold = Rs. 20,000 + Rs. 1,30,000 + Rs. 18,000 - Rs. 22,000

➜ Cost of Goods Sold = Rs. 1,68,000 - Rs. 22,000

➜ Cost of Goods Sold = Rs. 1,46,000

• So, Cost of Goods Sold is Rs. 1,46,000.

❒ Calculation of Gross Profit :-

Here,

• Net Sales = Rs. 2,00,000

• Cost of Goods Sold = Rs. 1,46,000

Using the formula of Gross Profit, we get,

• ★ Gross Profit = Net Sales - Cost of Goods Sold

➨ Gross Profit = Rs. 2,00,000 - Rs. 1,46,000

∴ Gross Profit = Rs. 54,000

• Hence, the Gross Profit is Rs. 54,000.

Answer 2

Explanation:

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses - Closing Stock

=> Cost of Goods Sold = 20,000 + 1,30,000 + 18,000 - 22,000

=> Cost of Goods Sold = 1,68,000 - 22,000

=> Cost of Goods Sold = Rs. 1,46,000

Net Sales = Rs. 2,00,000

Cost of Goods Sold = Rs. 1,46,000

Gross Profit = Net Sales - Cost of Goods Sold

=> Gross Profit = 2,00,000 - 1,46,000

∴ Gross Profit = Rs. 54,000