Question

Trading Accounts

Find out amount of sales from the following informations.
Opening stock - 20,000
Purchases less returns - 70,000
Direct expenses - 10,000
Closing stock - 30,000
Gross profit margin (on sales ) - 20%
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Answer 1

Answer:

87500

Explanation:

Let sales be x.

Sales = Net Purchase + D. E. + GP + OS - CS

= 70000 + 10000 + x/5 + 20000 - 30000

x= x/5 + 70000

4x/5 = 70000

x = 87500

Answer 2

Given :

• Opening stock = 20,000
• Purchases less returns = 70,000
• Direct Expenses = 10,000
• Closing Stock = 30,000
• Gross Profit (On Sales ) = 20%

To Find :

• Amount of sales.

Formula Applied :

$\sf\boxed{ \sf Sales = Cost \: Of \: goods \: Sold + Direct \: expenses}$

$\sf Cost \: Of \: goods \: Sold = Opening\:Stock + Net \\\sf \: purchases + \: Direct \:expenses - \:Closing stock$

Solution :

• Let's find cost of goods sold using the formula to find amount of sales.

$\sf Cost \: Of \: goods \: Sold = Opening\:Stock + Net\\\sf purchases \: Direct \: expenses - \:Closing stock$

$\sf Let \:the \:sales\: be\: 100$

$\sf Less : Gross\: Profit\: (20\% \: on \: sales,\: i.e., \: 100)$

$\textsf{Cost of goods sold = Sales - Gross Profit}$

$\textsf{Cost of good sold = 100 - 20 }\implies \sf 80$

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Therefore, percentage if gross profit on cost of goods sold is $\displaystyle \sf \frac{20}{80}\times 100 = 25 \%$

Gross profit = 25% on ₹70,000

i.e: $\displaystyle \sf \frac{25}{100}\times 70,000 = Rs. 17,500$

$\sf Sales = Cost \: Of \: goods \: Sold + Direct \: expenses$

$\implies \sf 70,000 + 17,500$

$\boxed{ \sf Sales = Rs.87,500}$

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Required Answer :

Amount of sales is $\underline { \sf Rs.87,500}$

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