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Problem 4 Chapter 1 – Unimax Publications of Class 11
From the following calculate
(i) Gross Profit and (ii) Net Profit
| Rs. | |
| Opening Stock | 2,500 |
| Closing Stock | 2,300 |
| Purchases | 97,000 |
| Sales | 1,00,000 |
| Purchases Returns | 2,000 |
| Direct Expenses | 1,200 |
| Indirect Expenses | 8,000 |
The solution of Problem 4 Chapter 1 – Unimax Publications of Class 11
| (i) Cost of goods sold | = Opening Stock + Net Purchases + Direct Expenses – Closing Stock |
| Net Purchases | = Purchases-Purchases Returns |
| = Rs. 97,000-2,000 | |
| = Rs. 95,000 | |
| Cost of goods sold | = Rs. 2,500+95,000+1,200-2,300 |
| = Rs. 96,400 | |
| (ii) Gross loss | = Net Sales – Cost of goods sold |
| = Rs. (1,00,000-96,400) | |
| = Rs. 3,600 |
| (iii) Net Profit | = Gross Profit-Indirect Expenses |
| (Or) Net Loss | = Indirect Expenses-Gross Profit |
| = Rs. 8,000-3,600 | |
| = Rs. 4,400 |
Note: Since, Indirect Expenses are more than gross profit. So, the result is net loss.
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