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From the following information, prepare Trading Account for the year ended 31st March, 2019: {:(,Rs,|,,Rs),("Opening Stock","1,00,000",,"Wages","2,000"),("Purchaese","2,80,000",,"Freight Inwards","3,600"),("Closing Stock","80,000",,"Carriage Inwards","1,000"):} Gross Profit on Sales is 20% |
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Answer» Solution :Let SALES be Rs 100, Gross PROFIT will be Rs 20 Therefore, Cost of Goods Sold `= Rs 100 - Rs 20 = Rs 80` When Cost of Goods Sold is Rs 80, then Sales = Rs 100 When cost of Goods Sold is Rs 1, then Sales `= Rs 100//Rs80` When Cost of Goods Sold is Rs `3,06,600^(**)`, then Sales `= Rs 100//Rs 80 xx Rs 3,06,600 = Rs 3,83,250`  `{:(,,Rs),(.^(**)"Calculation of Cost of Goods Sold",,),("Opening Stock",,"1,00,000"),("AddPurchases",,"2,80,000"),("Wages",,"2,000"),("Freight Inwards",,"3,600"),("Carriage Inwards",,UL("1,000")),(,,"3,86,600"),("Less : Closing Stock",,ul("80,000")),("Cost of Goods Sold",,ul("3,06,600")):}` Note: Gross Profit is 20% on Sales (i.e., 20/100 or 20/100 or 1/5) `(Rs 3,83,250 xx 1//5 = Rs 76,650) " or " 1//4th` of the cost (i.e., 20/80) `(Rs 3,06,600 xx 1//4 = Rs 76,650)`. It MEANS Gross Profit 1/5th on Sales = 1/4th on Cost |
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