Question

From the following information calculate net profit:

	Rs.
Opening stock	$15,00,000$
Direct expenses	$3,00,000$
Selling & distribution expenses	$2,00,000$
Administrative expenses	$1,00,000$
Financial expenses	$50,000$
Sales	$24,00,000$
Gross profit ratio on sales	$25\%$

• A. $2,50,000$
• B. $3,50,000$
• C. $2,00,000$
• D. $1,50,000$

Answer 1

The correct option is A $2,50,000$

Trading & Profit & loss for the year ended..

Particular	Amt	Particular	Amt
To Opening stock A/c	1500000	By Sales A/c	2400000
To Direct expenses A/c	300000
To Gross profit transferred A/c (25% of sales)	600000
	2400000		2400000
		By gross profit transferred A/c	600000
To Selling & Distribution expenses A/c	200000
To advertisement A/c	100000
To Financial expenses A/c	50000
To Net Profit transferred A/c	250000
	600000		600000