Question

Sales Rs.	Opening Stock Rs.	Purchases Rs.	Closing Stock Rs.	Cost of goods sold Rs.	Gross Profit Rs.	Trading Expenses Rs.	Net Profit Rs.
30,000	12,000	20,000	?	18,000	?	8,000	?

From the above answer following :
(i) Gross profit will be

• A. Rs.12,000
• B. Rs. 10,000
• C. Rs.16,000
• D. Rs. 14,000

Answer 1

The correct option is A Rs.12,000

Trading A/c For the year ended..

Particular	Amt	Particular	Amt
To opening stock A/c	12000	By Sales A/c	30000
To Purchase A/c	20000	By Closing stock A/c	22000
To trading expenses A/c	8000
To Gross Profit transferred A/c	12000
	52000		52000

To Ascertain Gross profit , we need to find out the value of closing stock :

Let us take "x" as closing stock

COGS = opening stock + purchase + direct expenses - closing stock

18000= 12000+ 20000 + 8000 - X

X = 40000 - 18000

= 22000.