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 option '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...
Given information:
- 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
- Gross Profit = 20% of Sales
To find: Gross Sales
Solution:
Step 1: Calculation of Cost of Goods Sold (COGS)
COGS = Opening Stock + Purchases + Carriage Inward - Return Outward - Closing Stock
COGS = 40,000 + 5,50,000 + 5,000 - 5,000 - 50,000
COGS = Rs. 5,40,000
Step 2: Calculation of Gross Profit
Gross Profit = Gross Sales - COGS
Gross Profit = 20% of Gross Sales - COGS
Gross Profit = 0.2 * Gross Sales - 5,40,000
Step 3: Calculation of Gross Sales
Gross Sales = (Gross Profit + COGS) / 0.2
Gross Sales = (0.2 * Gross Sales + 5,40,000) / 0.2
0.8 * Gross Sales = 5,40,000
Gross Sales = 5,40,000 / 0.8
Gross Sales = Rs. 6,95,000
Therefore, the gross sales will be Rs. 6,95,000 (Option A).
- 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
- Gross Profit = 20% of Sales
To find: Gross Sales
Solution:
Step 1: Calculation of Cost of Goods Sold (COGS)
COGS = Opening Stock + Purchases + Carriage Inward - Return Outward - Closing Stock
COGS = 40,000 + 5,50,000 + 5,000 - 5,000 - 50,000
COGS = Rs. 5,40,000
Step 2: Calculation of Gross Profit
Gross Profit = Gross Sales - COGS
Gross Profit = 20% of Gross Sales - COGS
Gross Profit = 0.2 * Gross Sales - 5,40,000
Step 3: Calculation of Gross Sales
Gross Sales = (Gross Profit + COGS) / 0.2
Gross Sales = (0.2 * Gross Sales + 5,40,000) / 0.2
0.8 * Gross Sales = 5,40,000
Gross Sales = 5,40,000 / 0.8
Gross Sales = Rs. 6,95,000
Therefore, the gross sales will be Rs. 6,95,000 (Option A).
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Community Answer
Opening Stock Rs. 40,000Closing Stock Rs. 50,000Purchases Rs. 5,50,000...
cogs = os + pur -cs = 540000 gp = 20% on sales so 25% on cost = 540000x25% = 135000 so debit side (40000+(550000-5000)+5000 + 135000)- credit side cs 50000 = 675000 net sales and gross sales = net sales + sales retern ie 675000 + 20000 = 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 option '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 option '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 option '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 option 'A'. Can you explain this answer?.
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