Question

Opening Stock Rs. 90,000, Cash Sales Rs. 36,000, Credit Sales Rs. 7,20,000, Returns outwards Rs. 6,000. Wages & Salaries Rs. 2,400 Carriage Inwards Rs. 1,200. Freight Inwards Rs. 1,800, Cartage Inwards Rs. 600, Cash Purchases Rs. 30,000, Credit Purchases 6,00,000, Returns Inward Rs. 12,000, Cost of closing Stock as on 31st March Rs. 54,000 but its market value is Rs. 50,400, Freight outwards Rs. 600. The Gross Profit for the year is _____________.

• A. Rs. 74,400
• B. Rs. 73,800
• C. Rs. 78,800
• D. None

Answer 1

The correct option is A Rs. 74,400

Net sales (cash sales + credit sales - return inward) 7,44,000

Add:- Closing stock (Lower of 54,000 or 50,400) 50,400

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7,94,400

Less:- Opening stock (90,000)

purchases ( 30,000 + 6,00,000 - 6,000) (6,24,000)

Direct expenses (1,200 + 2,400 + 1,800 + 600) (6,000)

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74,400