Question No 20 Chapter No 19
20. A firm sells goods at a Gross profit of 25% of sales. On 1st April, 2017 the Stock was 40,000; Purchases were 1,10,000 and the Stock on 31st March, 2018 was 30,000. What was the value of Sales?
The solution of Question No 20 Chapter No 19:-
| Cost of Goods Sold | = | Net Sales – Gross Profit |
| Cost of Goods Sold | = | Opening Stock + Purchases – Closing Stock |
| Cost of Goods Sold | = | 40,000 + 1,10,000 – 30,000 = 1,20,00 |
| Gross Profit | = | 25% of Sales or 33.33% of COGS |
| Gross Profit | = | 40,000 |
| Net Sales | = | Cost of Goods Sold + Gross Profit |
| Net Sales | = | 1,20,000 + 40,000 |
| = | 1,60,000 |
Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of previous Chapters: –
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- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
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T.S. Grewal’s Double Entry Book Keeping