Question

the following figures have been taken from the trial balance of a trader
purchases = 30000
purchase return=5000
sales=40000
sales return=5000
calculate the amount of profit or loss made by trader?

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Answer 1

Given :

• Purchases = 30,000

• Purchase Return = 5000

• Sales = 40,000

• Sales Return = 5000

To find :

• The profit or loss by trader ( gross Profit )

Solution :

Here , we have to less the purchase Return from purchases and sales return from total Sales.

⟶ Purchases - Purchases Return

= 30,000 - 5000

= 25,000

⟶ Sales - Sales Return

= 40,000 - 5,000

= 35,000

⟶ Total Sales - Purchases = ( Gross Profit )

= 35,000 - 25,000

= 10,000

So, Profit made by trader = ₹ 10,000.

More :

• Gross Profit = Net sales - Cost of Goods Sold

• Net sales = Gross Sales - Sales Return

• Net Purchases = Gross Purchase - Purchase Return.