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Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.?
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Mr. James submits you the following information for the year ended 31....
Calculation of Net Profit for the year ended 31.3.2011:
1. Calculation of Cost of Goods Sold (COGS):
Opening Inventory (as on 1.4.2010) = Rs. 1,50,500
Add: Purchases = Rs. 4,37,000
Add: Manufacturing expenses = Rs. 85,000
Less: Closing Inventory (not given, assumed) = Rs. 1,00,000
COGS = Rs. 5,72,500
2. Calculation of Gross Profit (GP):
GP = 20% of Sales = 20% of Rs. 6,25,000 = Rs. 1,25,000
3. Calculation of Operating Profit (OP):
OP = GP - Expenses on Sale - Expenses on Administration = Rs. 1,25,000 - Rs. 33,000 - Rs. 18,000 = Rs. 74,000
4. Calculation of Net Profit:
Net Profit = Operating Profit - Financial Charges = Rs. 74,000 - Rs. 6,000 = Rs. 68,000
Therefore, Mr. James' net profit for the year ended 31.3.2011 is Rs. 68,000.
Explanation:
- The calculation of net profit involves finding the cost of goods sold (COGS), gross profit (GP), operating profit (OP), and deducting financial charges to arrive at the final figure.
- COGS is the total cost of producing the goods that were sold during the year. It is calculated by adding the opening inventory to the purchases and manufacturing expenses and deducting the closing inventory.
- GP is the difference between sales and COGS. In this case, it is given that the GP is 20% of sales.
- OP is the GP minus the various expenses incurred in running the business, such as expenses on sale and administration.
- Finally, net profit is arrived at by deducting financial charges from OP. These are expenses incurred on borrowing money, such as interest on loans.
1. Calculation of Cost of Goods Sold (COGS):
Opening Inventory (as on 1.4.2010) = Rs. 1,50,500
Add: Purchases = Rs. 4,37,000
Add: Manufacturing expenses = Rs. 85,000
Less: Closing Inventory (not given, assumed) = Rs. 1,00,000
COGS = Rs. 5,72,500
2. Calculation of Gross Profit (GP):
GP = 20% of Sales = 20% of Rs. 6,25,000 = Rs. 1,25,000
3. Calculation of Operating Profit (OP):
OP = GP - Expenses on Sale - Expenses on Administration = Rs. 1,25,000 - Rs. 33,000 - Rs. 18,000 = Rs. 74,000
4. Calculation of Net Profit:
Net Profit = Operating Profit - Financial Charges = Rs. 74,000 - Rs. 6,000 = Rs. 68,000
Therefore, Mr. James' net profit for the year ended 31.3.2011 is Rs. 68,000.
Explanation:
- The calculation of net profit involves finding the cost of goods sold (COGS), gross profit (GP), operating profit (OP), and deducting financial charges to arrive at the final figure.
- COGS is the total cost of producing the goods that were sold during the year. It is calculated by adding the opening inventory to the purchases and manufacturing expenses and deducting the closing inventory.
- GP is the difference between sales and COGS. In this case, it is given that the GP is 20% of sales.
- OP is the GP minus the various expenses incurred in running the business, such as expenses on sale and administration.
- Finally, net profit is arrived at by deducting financial charges from OP. These are expenses incurred on borrowing money, such as interest on loans.
Community Answer
Mr. James submits you the following information for the year ended 31....
60,000
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Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.?
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Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.?.
Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.?.
Solutions for Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? defined & explained in the simplest way possible. Besides giving the explanation of
Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.?, a detailed solution for Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? has been provided alongside types of Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? theory, EduRev gives you an
ample number of questions to practice Mr. James submits you the following information for the year ended 31.3.2011 Inventory as on 1.4.2010 Rs. 1, 50,500 Purchases Rs. 4, 37,000 Manufacturing expenses Rs. 85, 000 Expenses on sale Rs. 33, 000 Expenses on administration Rs. 18, 000 Financial charges Rs. 6, 000 Sales Rs. 6, 25,000 GP is 20% on sales Compute the net profit of Mr. James for the year ended 31.3.2011.? tests, examples and also practice CA Foundation tests.
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