Question

Calculate gross profit, operating profit and net profit from the following.
$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Opening Stock}& 4,00,000& \text{Commission Paid}& 4,800\\ \text{Purchases}& 38,00,000& \text{Commission Received}& 12,000\\ \text{Sales}& 50,00,000& \text{Travelling Expenses}& 9,600\\ \text{Purchases Return}& 1,40,000& \text{Office Expenses}& 7,000\\ \text{Sales Return}& 2,00,000& \text{Interest on Long-term Loans}& 44,000\\ \text{Wages}& 1,60,000& \text{Dividend on Investments}& 5,600\\ \text{Advertising}& 24,000& \text{Printing and Stationery}& 7,200\\ \text{Salaries}& 3,56,000& \text{Loss on Sale of Machinery}& 70,000\\ \text{Rent and Taxes}& 1,24,000& \text{Carriage Outwards}& 2,800\\ \text{Lighting}& 30,000& \text{Loss by Theft}& 50,200\\ & & \text{Gain on Sale of Building}& 1,00,000\end{array}$

Closing stock was valued at Rs. 5,00,000

Answer 1

Trading and Profit and Loss Account
$\begin{array}{cccccccc}\text{Dr.}& & & & \text{for the year ended ....}& & & \text{Cr.}\end{array}$
$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Opening Stock}& 4,00,000& \text{Sales}50,00,000& \\ \text{Purchases}38,00,000& & (-)\text{Sales Return}\underset{–}{2,00,000}& 48,00,000\\ (-)\text{Purchases Return}\underset{–}{1,40,000}& 36,60,000& \text{Closing Stock}& 5,00,000\\ \text{Wages}& 1,60,000& & \\ \text{Gross Profit Transferred to}& 10,80,000& & \\ \text{Profit and Loss A/c}& & & \\ & \overline{\underset{–}{\underset{–}{53,00,000}}}& & \overline{\underset{–}{\underset{–}{53,00,000}}}\\ \text{Advertising}& 24,000& \text{Gross profit b/d}& 10,80,000\\ \text{Salaries}& 3,56,000& \text{Commission Received}& 12,000\\ \text{Rent and Taxes}& 1,24,000& & \\ \text{Lighting}& 30,000& & \\ \text{Commission Paid}& 4,800& & \\ \text{Travelling Expenses}& 9,600& & \\ \text{Office Expenses}& 7,000& & \\ \text{Printing and Stationary}& 7,200& & \\ \text{Carriage Outwards}& 2,800& & \\ \text{Operating Profit c/d}& 5,26,600& & \\ & \overline{\underset{–}{10,92,000}}& & \overline{\underset{–}{10,92,000}}\\ \text{Interest on Long-term Loans}& 44,000& \text{Operating Profit b/d}& 5,26,600\\ \text{Loans on Sale of Machinery}& 70,000& \text{Dividend on Investments}& 5,600\\ \text{Loss by Theft}& 50,200& \text{Gain on Sale of Building}& 1,00,000\\ \text{Net Profit Transferrd to Capital A/c}& 4,68,000& & \\ & \overline{\underset{–}{\underset{–}{6,32,200}}}& & \overline{\underset{–}{\underset{–}{6,32,200}}}\end{array}$