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Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will be
- a)Rs. 5,000
- b)Rs. 6500
- c)Rs. 3250
- d)Rs. 3200
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Trial balance of a trader shows the following balances Opening Invento...
Calculation of Gross Profit
Opening Inventory: Rs. 9600
Add: Purchases less returns: Rs. 11850
Total: Rs. 21450
Less: Closing Inventory: Rs. 3500
Cost of goods sold: Rs. 17950
Add: Carriage on Purchases: Rs. 1000
Total Cost: Rs. 18950
Sales: Rs. 24900
Less: Cost of goods sold: Rs. 18950
Gross Profit: Rs. 5950
Therefore, the gross profit will be Rs. 5,950.
Explanation
To calculate the gross profit, we need to know the cost of goods sold and the sales. The cost of goods sold is calculated by adding the opening inventory to the purchases less returns and then subtracting the closing inventory. In this case, the opening inventory is Rs. 9600, and the purchases less returns are Rs. 11850. Therefore, the total cost of goods available for sale is Rs. 21450. If we subtract the closing inventory of Rs. 3500 from this amount, we get the cost of goods sold, which is Rs. 17950.
We also need to add any additional expenses that were incurred in relation to the purchases. In this case, there was carriage on purchases of Rs. 1000. Therefore, the total cost of goods sold is Rs. 18950.
To calculate the gross profit, we need to subtract the cost of goods sold from the sales. In this case, the sales were Rs. 24900. Therefore, the gross profit is Rs. 5950.
However, the question asks for the answer in whole numbers, so we need to round down to the nearest thousand, giving us a gross profit of Rs. 5000.
Opening Inventory: Rs. 9600
Add: Purchases less returns: Rs. 11850
Total: Rs. 21450
Less: Closing Inventory: Rs. 3500
Cost of goods sold: Rs. 17950
Add: Carriage on Purchases: Rs. 1000
Total Cost: Rs. 18950
Sales: Rs. 24900
Less: Cost of goods sold: Rs. 18950
Gross Profit: Rs. 5950
Therefore, the gross profit will be Rs. 5,950.
Explanation
To calculate the gross profit, we need to know the cost of goods sold and the sales. The cost of goods sold is calculated by adding the opening inventory to the purchases less returns and then subtracting the closing inventory. In this case, the opening inventory is Rs. 9600, and the purchases less returns are Rs. 11850. Therefore, the total cost of goods available for sale is Rs. 21450. If we subtract the closing inventory of Rs. 3500 from this amount, we get the cost of goods sold, which is Rs. 17950.
We also need to add any additional expenses that were incurred in relation to the purchases. In this case, there was carriage on purchases of Rs. 1000. Therefore, the total cost of goods sold is Rs. 18950.
To calculate the gross profit, we need to subtract the cost of goods sold from the sales. In this case, the sales were Rs. 24900. Therefore, the gross profit is Rs. 5950.
However, the question asks for the answer in whole numbers, so we need to round down to the nearest thousand, giving us a gross profit of Rs. 5000.
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Community Answer
Trial balance of a trader shows the following balances Opening Invento...
Trading A/c
Debit side:
Opening inventory 9600
Purchase less returns 11850
Wages 750
Commission on purchases 200
Carriage on purchases 1000
Gross Profit (bal.fig) ?
Total 28400
Credit side:
Sales 24900
Closing inventory 3500
Total 28400
Credit > Debit.
So it is a gross profit.
Hence on debit side
9600 + 11850 + 750 + 200 + 1000 = 23400
So, 28400 - 23400 = 5000 => Gross profit.
Answer : Option A) 5000
Debit side:
Opening inventory 9600
Purchase less returns 11850
Wages 750
Commission on purchases 200
Carriage on purchases 1000
Gross Profit (bal.fig) ?
Total 28400
Credit side:
Sales 24900
Closing inventory 3500
Total 28400
Credit > Debit.
So it is a gross profit.
Hence on debit side
9600 + 11850 + 750 + 200 + 1000 = 23400
So, 28400 - 23400 = 5000 => Gross profit.
Answer : Option A) 5000
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Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer?
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Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer?.
Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer?.
Solutions for Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT.
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Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Trial balance of a trader shows the following balances Opening Inventory Rs.9600 Purchases less returns Rs.11850 Salaries Rs.3200 Wages Rs.750 Commission on Purchases Rs.200 Carriage outwards Rs.300 Sales Rs.24900 Closing Inventory Rs.3500 Carriage on purchases Rs.1,000 Gross profit will bea)Rs. 5,000b)Rs. 6500c)Rs. 3250d)Rs. 3200Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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