Question

What is the amount of gross profit or loss when–Cost of Goods sold = 7900,Sales = 11000,Purchases = 3000
(A) Rs. 8000
(B) Rs. 4900
(C) Rs. 3100
(D) Rs. 100 (loss)

Answer 1

Answer: Rs.3100

Step-by-step explanation:

• Given cost of goods sold=Rs.7900
• Sales=Rs.11000
• Purchases=Rs.3000
• ∵ Sales>Cost, so there will be profit.
• We know Profit = Cost Price-Selling Price

                      ⇒Profit= Rs.(11000-7900)

                        ∴ Profit=Rs.3100

• Hence, amount of gross profit is Rs.3100.