Class 11 Exam > Class 11 Questions > Collect gross profit from the following infor...
Start Learning for Free
Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000?
Most Upvoted Answer
Collect gross profit from the following information . Opening stock - ...
Gross Profit Calculation
To calculate the gross profit, we need to first understand what it means. Gross profit is the difference between the revenue generated by sales and the cost of goods sold. It is a measure of how efficiently a company is utilizing its resources to produce goods or services.
Given Information
- Opening stock - 40,000
- Purchases - 4,20,000
- Expenses on purchases - 8,000
- Expenses on sales - 15,000
- Wages- 30,000
- Sales - 6,00,000
- Closing stock - 52,000
Cost of Goods Sold
The cost of goods sold (COGS) is the cost of producing or acquiring the products that are sold by the company. To calculate the COGS, we need to add the opening stock and purchases and deduct the closing stock from it.
COGS = Opening Stock + Purchases - Closing Stock
= 40,000 + 4,20,000 - 52,000
= 4,08,000
Gross Profit Calculation
Once we have calculated the COGS, we can calculate the gross profit using the formula:
Gross Profit = Sales - COGS - Expenses on Purchases - Expenses on Sales - Wages
Gross Profit = 6,00,000 - 4,08,000 - 8,000 - 15,000 - 30,000
= 99,000
Conclusion
Therefore, the gross profit for the given information is 99,000. Gross profit is an important metric as it shows the profitability of a company before deducting other expenses such as rent, utility bills, taxes, and interest payments. A higher gross profit indicates that the company is generating more revenue from sales than it is spending on producing goods or services. This is a positive sign for investors and other stakeholders as it shows that the company is efficient in its operations.
To calculate the gross profit, we need to first understand what it means. Gross profit is the difference between the revenue generated by sales and the cost of goods sold. It is a measure of how efficiently a company is utilizing its resources to produce goods or services.
Given Information
- Opening stock - 40,000
- Purchases - 4,20,000
- Expenses on purchases - 8,000
- Expenses on sales - 15,000
- Wages- 30,000
- Sales - 6,00,000
- Closing stock - 52,000
Cost of Goods Sold
The cost of goods sold (COGS) is the cost of producing or acquiring the products that are sold by the company. To calculate the COGS, we need to add the opening stock and purchases and deduct the closing stock from it.
COGS = Opening Stock + Purchases - Closing Stock
= 40,000 + 4,20,000 - 52,000
= 4,08,000
Gross Profit Calculation
Once we have calculated the COGS, we can calculate the gross profit using the formula:
Gross Profit = Sales - COGS - Expenses on Purchases - Expenses on Sales - Wages
Gross Profit = 6,00,000 - 4,08,000 - 8,000 - 15,000 - 30,000
= 99,000
Conclusion
Therefore, the gross profit for the given information is 99,000. Gross profit is an important metric as it shows the profitability of a company before deducting other expenses such as rent, utility bills, taxes, and interest payments. A higher gross profit indicates that the company is generating more revenue from sales than it is spending on producing goods or services. This is a positive sign for investors and other stakeholders as it shows that the company is efficient in its operations.
Attention Class 11 Students!
To make sure you are not studying endlessly, EduRev has designed Class 11 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 11.
|
Explore Courses for Class 11 exam
|
|
Top Courses for Class 11View all
Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000?
Question Description
Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000?.
Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000?.
Solutions for Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? in English & in Hindi are available as part of our courses for Class 11.
Download more important topics, notes, lectures and mock test series for Class 11 Exam by signing up for free.
Here you can find the meaning of Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? defined & explained in the simplest way possible. Besides giving the explanation of
Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000?, a detailed solution for Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? has been provided alongside types of Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? theory, EduRev gives you an
ample number of questions to practice Collect gross profit from the following information . Opening stock - 40,000 Purchases - 4,20,000 Expenses on purchases - 8,000 Expenses on sales - 15,000 Wages- 30,000 Sales - 6,00,000 Closing stock - 52,000? tests, examples and also practice Class 11 tests.
|
|
Explore Courses for Class 11 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup