Title TS-Grewal-Class11-CH14.pdf ✅

Q.3 From the following information, determine Gross Profit for the year ended 31st March, 2019: ₹ ₹ Opening Stock (1st April, 2018) 25,000 Goods purchased during the year 1,40,000 Freight and Packing 10,000 Closing Stock (31st March, 2019) 30,000 Sales 1,90,000 Packing Expenses on Sales 6,000 The solution can be presented as follows Gross Profit = Sales + Closing Stock – (Opening Stock + Goods Purchased +Freight and Packing) = 1,90,000 + 30,000 – (25,000 + 1,40,000 + 10,000) = 2,20,000 – 1,75,000 = 45,000 N.B: The entry packing expense on sales is an indirect expense and therefore is not considered to be a part of the Gross Profit. Q.4 Calculate Closing Stock from the following details: ₹ ₹ Opening Stock 20,000 Purchases 70,000 Cash Sales 60,000 Credit Sales 40,000 Rate of Gross Profit on Cost 33 1/3% The solution can be presented as follows Gross Profit on cost = 33 1/3 %. Cost =1/3rd. Gross Profit on sales = 1⁄4 th Also, Sales = Cash Sales + Credit Sales = 60,000+40,000 = 1,00,000 So, Gross Profit =1,00,000 x 1⁄4 = 25,000