(Rs.)
Opening stock 50,000
Net sales 11,00,000
Net purchase 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 M/s Rajiv and Sons for the year ended March 31, 2011.

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Solution

Computation of Gross Profit
Operating Profit = Gross Profit - Operating Expenses + Operating Income
= 4,60,000 - 45,000 - 65,000 = 3,50,000
Note Loss due to fire is a non-operating expenses.

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Q. Calculate the amount of gross profit, operating profit and net profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.

	₹
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.

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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

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$\begin{matrix} Amt (Rs.) Opening stock & 50, 000 Net sales & 11, 00, 000 Net purchases & 6, 00, 000 Direct expenses & 60, 000 Administration expenses & 45, 000 Selling and distribution expenses & 65, 000 Loss due to fire & 20, 000 Closing stock & 70, 000 \end{matrix}$

From the following balances taken from the books of Simmi and Vimmi Ltd. for the year ending March 31, 2011, calculate the gross profit.

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$Net sales during the year 40, 00, 000$
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$Opening stock 15, 00, 000$
$Direct expenses 80, 000$

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, 2011.

$\begin{matrix} (Rs.) Opening stock & 50, 000 Net sales & 11, 00, 000 Net purchase & 6, 00, 000 Direct expenses & 60, 000 Administration expenses & 45, 000 Selling and distribution expenses & 65, 000 Loss due to fire & 20, 000 Closing stock & 70, 000 \end{matrix}$

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	(Rs.)
Opening stock	50,000
Net sales	11,00,000
Net purchase	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

Computation of Gross ProfitOperating Profit = Gross Profit - Operating Expenses + Operating Income = 4,60,000 - 45,000 - 65,000 = 3,50,000Note Loss due to fire is a non-operating expenses.

Computation of Gross Profit
Operating Profit = Gross Profit - Operating Expenses + Operating Income
= 4,60,000 - 45,000 - 65,000 = 3,50,000
Note Loss due to fire is a non-operating expenses.