Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv and Sons for the year ended March 31, 2017.
Rs
Opening stock
50,000
Net sales
11,00,000
Net purchases
6,00,000
Direct expenses
60,000
Administration expenses
45,000
Selling and distribution expenses
65,000
Loss due to fire
20,000
Closing stock
70,000
Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv and Sons for the year ended March 31, 2017.
|
|
Rs |
|
Opening stock |
50,000 |
|
Net sales |
11,00,000 |
|
Net purchases |
6,00,000 |
|
Direct expenses |
60,000 |
|
Administration expenses |
45,000 |
|
Selling and distribution expenses |
65,000 |
|
Loss due to fire |
20,000 |
|
Closing stock |
70,000 |
Trading Account as on March 31, 2017
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Opening Stock
50,000
Net Sales
11,00,000
Net Purchases
6,00,000
Closing Stock
70,000
Direct Expenses
60,000
Gross Profit
4,60,000
11,70,000
11,70,000
Operating Profit
=
Sales – (Opening Stock + Net Purchases + Direct Expenses + Administration Expenses +
Selling and Distribution Expenses) + Closing Stock
=
11,00,000 – (50,000 + 6,00,000 + 60,000 + 45,000 + 65,000) + 70,000
=
Rs 3,50,000
|
Trading Account as on March 31, 2017 |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Opening Stock |
50,000 |
Net Sales |
11,00,000 |
|
Net Purchases |
6,00,000 |
Closing Stock |
70,000 |
|
Direct Expenses |
60,000 |
||
|
Gross Profit |
4,60,000 |
||
|
11,70,000 |
11,70,000 |
||
|
|
|
|
|
|
Operating Profit |
= |
Sales – (Opening Stock + Net Purchases + Direct Expenses + Administration Expenses + Selling and Distribution Expenses) + Closing Stock |
|
|
= |
11,00,000 – (50,000 + 6,00,000 + 60,000 + 45,000 + 65,000) + 70,000 |
|
|
= |
Rs 3,50,000 |
