If the net sales are Rs.35,000, Net Purchases Rs.25,000 and the Closing Stock is Rs.5,000, what will be the amount of Gross Profit?
Rs.15,000
The correct answer is option 1. Gross Profit is calculated as: Gross Profit = Net Sales - (Net Purchases + Closing Stock). In this case, Gross Profit = Rs.35,000 - (Rs.25,000 + Rs.5,000) = Rs.15,000.
Important Questions from Trading and Profit & Loss Account
The cost of goods sold is equal to:
Which of the following costs is NOT included while calculating the cost of the inventory?
A not-for-profit organization pays rent for the building at Rs. 1,000 per month. However, the rent for the last two months has not been paid. What will be the amount shown in the receipt & payment account and income & expenditure account, respectively?
Which of the following statements is INCORRECT in the context of Not-for-profit organizations?
Which of the following items is NOT recorded in profit and loss account?
