To arrive at the gross profit of a trading business, which one of the following formula is applied?

Sales - (Opening Stock - Purchases - Closing Stock)

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Sales - (Opening Stock + Purchases + Closing Stock)

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Sales - (Opening Stock + Purchases - Closing Stock)

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Sales - (Opening Stock - Purchases + Closing Stock)

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Solution

The correct option is C
Sales - (Opening Stock + Purchases - Closing Stock)

Gross profit = Sales - (Opening Stock + Purchases - Closing Stock).

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Similar questions

During the costing process, to arrive at the closing stock of a trading business, which one of the following formula is applied?

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To arrive at the gross profit of a trading business, which one of the following formula is applied?

The correct option is C Sales - (Opening Stock + Purchases - Closing Stock) Gross profit = Sales - (Opening Stock + Purchases - Closing Stock).

The correct option is C
Sales - (Opening Stock + Purchases - Closing Stock)

Gross profit = Sales - (Opening Stock + Purchases - Closing Stock).