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Calculate gross income from the following information:ParticularsRs.ParticularsRs.Sales10,000Freight300Sales200Salaries2,000Returns1,000purchases6,000Opening stock1,200purchase return100Closing stock wages700 |
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Answer» Gross income = Net sales – Cost of goods sold = Rs. 9,800 – Rs. 6,700 = Rs. 3100 Working Notes : a. Cost of goods sold = Opening stock + Net purchases + wages + freight – Closing stock = Rs. 1,000 + Rs. 5,900 + Rs. 700 + Rs. 300 – Rs. 1,200 = Rs. 6,700 b. Net sales = Sales – Sales Returns = Rs.10,000 – Rs. 200 = Rs. 9,800 c. Net Purchases = Purchase – Purchase returns = Rs. 6,000 – Rs. 100 = Rs. 5,900 |
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