CA Foundation Exam > CA Foundation Questions > Opening Stock Rs. 40,000Closing Stock Rs. 50,...
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Opening Stock Rs. 40,000
Closing Stock Rs. 50,000
Purchases Rs. 5,50,000
Return outward Rs. 5,000
Return inward Rs. 20,000
Carriage inward Rs. 5,000
If gross profit is 20% of sales, the gross sales will be:
Closing Stock Rs. 50,000
Purchases Rs. 5,50,000
Return outward Rs. 5,000
Return inward Rs. 20,000
Carriage inward Rs. 5,000
If gross profit is 20% of sales, the gross sales will be:
- a)Rs. 6,95,000
- b)Rs. 6,75,000
- c)Rs. 5,40,000
- d)Rs.6,68,750
Correct answer is 'A'. Can you explain this answer?
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Verified Answer
Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000...
Cost of goods sold(net)= Opening stock + Net purchases + direct exp. - closing stock
Substitute all values in the above formula,
Cost of goods sold(net) = 30000 + 545000 + 5000 - 40000
= INR 540000
Now question says profit is 20% of net sales which means profit is 1/5th of net sales. To be more clear , 1= profit and 5 = net sales in the above fraction...
So what is cost?
Cost = net sales - profit
= 5 - 1
= 4
Which we can say, that profit is 1/4th on cost of net sales...
So profit will be = 540000(cost of net sales) * 1/4th
= INR 135000
So now the Net sales will be = cost of net sales + profit
= 540000 +135000
Net sales = INR 675000
now gross sales will be = Net sales + returns
= 675000 + 20000
Gross sales = INR 695000
Most Upvoted Answer
Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000...
Calculation of Gross Sales:
1. Calculation of Cost of Goods Sold:
Opening Stock = Rs. 40,000
Add: Purchases = Rs. 5,50,000
Add: Carriage Inward = Rs. 5,000
Less: Return Outward = Rs. 5,000
Cost of Goods Sold = Rs. 5,90,000
2. Calculation of Gross Profit:
Gross Profit = 20% of Sales
Cost of Goods Sold = 80% of Sales
Gross Profit = Sales - Cost of Goods Sold
20% of Sales = Sales - Rs. 5,90,000
Sales = (20/100) * Sales + Rs. 5,90,000
(80/100) * Sales = Rs. 5,90,000
Sales = Rs. 7,37,500
3. Calculation of Gross Sales:
Closing Stock = Rs. 50,000
Gross Sales = Cost of Goods Sold + Gross Profit - Closing Stock
Gross Sales = Rs. 5,90,000 + Rs. 1,47,500 - Rs. 50,000
Gross Sales = Rs. 6,95,000
Therefore, the correct option is (a) Rs. 6,95,000.
1. Calculation of Cost of Goods Sold:
Opening Stock = Rs. 40,000
Add: Purchases = Rs. 5,50,000
Add: Carriage Inward = Rs. 5,000
Less: Return Outward = Rs. 5,000
Cost of Goods Sold = Rs. 5,90,000
2. Calculation of Gross Profit:
Gross Profit = 20% of Sales
Cost of Goods Sold = 80% of Sales
Gross Profit = Sales - Cost of Goods Sold
20% of Sales = Sales - Rs. 5,90,000
Sales = (20/100) * Sales + Rs. 5,90,000
(80/100) * Sales = Rs. 5,90,000
Sales = Rs. 7,37,500
3. Calculation of Gross Sales:
Closing Stock = Rs. 50,000
Gross Sales = Cost of Goods Sold + Gross Profit - Closing Stock
Gross Sales = Rs. 5,90,000 + Rs. 1,47,500 - Rs. 50,000
Gross Sales = Rs. 6,95,000
Therefore, the correct option is (a) Rs. 6,95,000.
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Community Answer
Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000...
First find COGS I.e. cost of goods sold by adding 40000 + 550000 - 5000 + 5000 - 50000 = 540000 . it is given gross profit is 20% of sales which means it will be 25% of cost of sales which means sales is 25% of COGS + COGS = 675000 . but this 675000 is net sales to make it gross sales add return inward 20000 to it to get to final answer A 695000
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Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000Return outward Rs. 5,000Return inward Rs. 20,000Carriage inward Rs. 5,000If gross profit is 20% of sales, the gross sales will be:a)Rs. 6,95,000b)Rs. 6,75,000c)Rs. 5,40,000d)Rs.6,68,750Correct answer is 'A'. Can you explain this answer?
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Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000Return outward Rs. 5,000Return inward Rs. 20,000Carriage inward Rs. 5,000If gross profit is 20% of sales, the gross sales will be:a)Rs. 6,95,000b)Rs. 6,75,000c)Rs. 5,40,000d)Rs.6,68,750Correct answer is 'A'. Can you explain this answer? 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 Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000Return outward Rs. 5,000Return inward Rs. 20,000Carriage inward Rs. 5,000If gross profit is 20% of sales, the gross sales will be:a)Rs. 6,95,000b)Rs. 6,75,000c)Rs. 5,40,000d)Rs.6,68,750Correct answer is 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000Return outward Rs. 5,000Return inward Rs. 20,000Carriage inward Rs. 5,000If gross profit is 20% of sales, the gross sales will be:a)Rs. 6,95,000b)Rs. 6,75,000c)Rs. 5,40,000d)Rs.6,68,750Correct answer is 'A'. Can you explain this answer?.
Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000Return outward Rs. 5,000Return inward Rs. 20,000Carriage inward Rs. 5,000If gross profit is 20% of sales, the gross sales will be:a)Rs. 6,95,000b)Rs. 6,75,000c)Rs. 5,40,000d)Rs.6,68,750Correct answer is 'A'. Can you explain this answer? 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 Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000Return outward Rs. 5,000Return inward Rs. 20,000Carriage inward Rs. 5,000If gross profit is 20% of sales, the gross sales will be:a)Rs. 6,95,000b)Rs. 6,75,000c)Rs. 5,40,000d)Rs.6,68,750Correct answer is 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000Return outward Rs. 5,000Return inward Rs. 20,000Carriage inward Rs. 5,000If gross profit is 20% of sales, the gross sales will be:a)Rs. 6,95,000b)Rs. 6,75,000c)Rs. 5,40,000d)Rs.6,68,750Correct answer is 'A'. Can you explain this answer?.
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