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Value of stock on 1.4.2019 350000 Purchases during the period from 1.4.18 to 31.3.20 1730000 Manufacturing expenses during the above period 350000 Sales during the same period 2610000 At the time of valuing stock on 31.3.2019 a sum of 30000 was written off a particular item which was originally purchased for 100000 and was sold for 80000. But for above transactions the gross profit earned during the year was 25% on cost.?
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Value of stock on 1.4.2019 350000 Purchases during the period from 1.4...
Explanation of Gross Profit Calculation

Definition of Gross Profit: Gross profit is the difference between net sales and cost of goods sold. It is the profit a company makes after deducting the direct costs of producing and selling its products or services.

Calculation of Cost of Goods Sold (COGS):
COGS = Opening Stock + Purchases – Closing Stock
COGS = 350000 + 1730000 – X (closing stock)

Calculation of Gross Profit:
Gross Profit = Net Sales – Cost of Goods Sold
Gross Profit = 2610000 – (350000 + 1730000 – X)
Gross Profit = 2610000 – 2080000 + X
Gross Profit = 530000 + X

Calculation of X:
X = Closing Stock as on 31.3.2020
Closing Stock as on 31.3.2019 = 350000 – 30000
Closing Stock as on 31.3.2019 = 320000

Calculation of Gross Profit Percentage:
Gross Profit Percentage = (Gross Profit / Cost of Goods Sold) x 100
Gross Profit Percentage = (530000 + 320000) / (350000 + 1730000) x 100
Gross Profit Percentage = 850000 / 2080000 x 100
Gross Profit Percentage = 40.87%

Conclusion:
The gross profit earned during the year was 40.87% on cost. This means that for every Rs. 100 spent on producing and selling goods, the company earned Rs. 40.87 as gross profit before deducting other expenses. The company has also written off Rs. 30000 on a particular item, which was originally purchased for Rs. 100000 and was sold for Rs. 80000. This means that the company incurred a loss of Rs. 20000 on that item.
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Value of stock on 1.4.2019 350000 Purchases during the period from 1.4.18 to 31.3.20 1730000 Manufacturing expenses during the above period 350000 Sales during the same period 2610000 At the time of valuing stock on 31.3.2019 a sum of 30000 was written off a particular item which was originally purchased for 100000 and was sold for 80000. But for above transactions the gross profit earned during the year was 25% on cost.?
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Value of stock on 1.4.2019 350000 Purchases during the period from 1.4.18 to 31.3.20 1730000 Manufacturing expenses during the above period 350000 Sales during the same period 2610000 At the time of valuing stock on 31.3.2019 a sum of 30000 was written off a particular item which was originally purchased for 100000 and was sold for 80000. But for above transactions the gross profit earned during the year was 25% on cost.? 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 Value of stock on 1.4.2019 350000 Purchases during the period from 1.4.18 to 31.3.20 1730000 Manufacturing expenses during the above period 350000 Sales during the same period 2610000 At the time of valuing stock on 31.3.2019 a sum of 30000 was written off a particular item which was originally purchased for 100000 and was sold for 80000. But for above transactions the gross profit earned during the year was 25% on cost.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Value of stock on 1.4.2019 350000 Purchases during the period from 1.4.18 to 31.3.20 1730000 Manufacturing expenses during the above period 350000 Sales during the same period 2610000 At the time of valuing stock on 31.3.2019 a sum of 30000 was written off a particular item which was originally purchased for 100000 and was sold for 80000. But for above transactions the gross profit earned during the year was 25% on cost.?.
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