Question

Calculate Net Sales and G.P. from the following:

Cost of Goods Sold	₹ 4,50,000
G.P.	25% on Sales

Answer 1

$\begin{array}{l}\text{Gross Profit = 25\% on Sales or}\frac{1}{4}\text{on Sales}\\ \frac{1}{4}\text{on Sales =}\frac{1}{3}rd\text{on Cost}\\ \text{Gross Profit =}\frac{1}{3}\times \text{4,50,000}\\ \text{= Rs 1,50,000}\\ \\ \text{Cost of Good Sold = Sales}-\text{Gross Profit}\\ \text{4,50,000 = Sales}-\text{1,50,000}\\ \text{Sales = Rs 6,00,000}\end{array}$