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Question 8 Chapter 1 – Unimax Publications of Class 11
8. Calculate Merchandise Cost, gross profit and net income from the following:
| Rs. | |
| Purchases (3,000 articles) | 25,000 |
| Freight | 1,500 |
| Local Taxes | 1,000 |
| Salaries | 2,500 |
| Shop Rent | 500 |
| Godown Rent | 500 |
| Electric Charges | 600 |
| Municipal Taxes | 200 |
| Stationery | 250 |
| Furniture (estimated life 5 years) | 12,000 |
| Sales (2,700 Articles) | 32,000 |
The solution of Question 8 Chapter 1 – Unimax Publications of Class 11
| Merchandise Cost | = Opening Stock + Net Purchases + Direct Expenses – Closing Stock (from see it working note) |
| = Rs. Nil +25,000 +2,500-2,750 | |
| = Rs. 24,750 | |
| Gross Profit | = Net Sales – Merchandise Cost |
| = Rs. 32,000-24,750 | |
| = Rs. 7,250 | |
| Net Income | = Gross Profit- Indirect ( Operating Expenses) |
| = Rs. 7,250- 6,950 | |
| = Rs. 300 |
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