Question

X purchased 2000 boxes costing Rs 100 each. 400 boxes were sent out to Y at 25%+ on cost. 1200 boxes were sold at Rs 120 each. What will be the amount of gross profit to be recorded in general trading A/c?

• A. Rs. 24,000
• B. Rs. 34,000
• C. Rs. 6,000
• D. None

Answer 1

The correct option is B Rs. 34,000

Total number of boxes = 2000 , out of which

400 units are sold at 25% + on cost i.e. 400*125= 50000

1200 units are sold at Rs 120 = 144000

Closing stock = 400*100= 40000

Calculation of Gross Profit = (50000+144000+40000) - 200000 (Cost of total boxes) =Rs 34000