Question No 09 Chapter No 1 – USHA Publication 11 Class

Q 9 CH 1 USHA 1 Book 2020 Solution min 1024x576 - Question No 09 Chapter No 1 - USHA Publication  11 Class

Question No 09 Chapter No 1

9. Find out the cost of goods sold, gross profit and net income from the following information

  Rs   Rs
Purchase (3,000 articles) 50,000 Electricity charges 1,200
Freight 3,000 Municipal taxes 400
Carriages 2,000 Stationary 500
Salaries 5,000 Furniture (estimated life 5 years) 24,000
Shop rent 1,000 Sales (2,700 articles) 64,000
Godown rent 1,000    

 

 

The solution of Question No 09 Chapter No 1: –

 

(i)

Mechandise cost

= Opening stock + Net purchased + Direct expenses – Closing stock
  = Nil + 50,000 + 3,000 + 2,000 – 5,500
  = Rs 49,500

 

Average Profit = 50,000 + 3,000 + 2,000 X300
3
       
  = Rs 5,500  

 

(ii)

Gross profit

= Net sale – Merchandise cost
  = 64,000 – 49,500
  = Rs 14,500

 

(iii)

 

Net profit

= Gross profit – Operating expenses
  = 14,500 – 5,000 + 1,000 + 1,000 + 1,200 + 400 + 500 + 4,800
  = Rs 600

 

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