Gross Profit

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Illustration: Calculation Gross Profit from the following information

Particulars

Amount (in Rs.)

Opening Stock

25,000.00

Purchases

  5,000.00

Sales

50,000.00

Salaries

    500.00

Fuel

  2,000.00

Closing Stock

  5,000.00

Purchases returned

  2,000.00

Sales returned

  1,000.00

Carriage

  1,500.00

Octroi

  500.00

Total

92,500.00

Solution:

  • Sum of All Direct and Indirect Expenses

Fuel                 : 2,000

Carriage          : 1,500

Octroi              : 500

Salaries           : 500

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Total = 4500


  • Net Purchase (Sum of Purchase and Purchase Returned)

Purchase                      : 5000

Purchase Returned      : 2000

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Total = 3000

  • Net Sales (Sum o Sales and Sales Returned) 

Sales                            : 50000

Sales Returned            : 1000

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Total = 49000

  • Cost of Goods (Sum of all)

Total Expenses                         :  4500

Net Purchase                           :   3000

Opening Stock                         :   25000

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Total = 32500

  • Gross Profit (Sum of Closing stock and Net sales and minus with cost of goods)

Closing Stock               : 5000

Net Sales                     : 49000

Cost of Goods              : 32500

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Total = 21500 (Gross Profit)

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