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) Net profit will be

• A. Rs.12,000
• B. Rs.10,000
• C. Rs.4,000
• D. Rs.7,000

Answer 1

The correct option is C Rs.4,000

COGS=Opening stock + Purchase + Expenses - Closing Stock

18000 = 12000 + 20000 + 8000 - Closing stock

Closing stock = 40000 - 18000 = 22000

Gross Profit = (Sales + Cl stock) - (Opening stk + purchase + Expenses)

= 52000 - 40000 = 12000

Net Profit = Gross profit -indirect expenses

= 12000 - 0 = 12000