Pls suggest me which s right approach.....!!!!
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 November 2012
D question s
Consider the following data pertaining to R ltd. for the month of June 2011
Opening stock - 30,000
Closing stock - 40,000
Purchases - 5,60,000
Return outwards - 15,000
Return inward - 20,000
Carriage inward - 5,000
If the gross profit is 20% of net sales , the gross sales for the month of June 2011 is what........????/
Ist approach :
Opening stock + purchases + carriage inward - return outward - closing stock = 5,40,000.....which I considered it as 80% of sales.....den for 100% we should calculate it as 5,40,000/.8 = 6,75,000.....!!!! Then with this amt add the net sales , then we get 6,95,000 as
gross sales ......!!!!
IInd approach :
Opening stock + purchases +
carriage inward - return outward - closing stock = 5,40,000...then nw less less 20% from return inward....so tat we can get the cost of goods returned .......!!!! So add this to 5,40,000 i.e 5,40,000+16,000=5,56,000......!!!! Then nw 5,56,000/.8 = 6,95,000.....!!!!!
Nw plzzz suggest me which one is right approach .......?????
Consider the following data pertaining to R ltd. for the month of June 2011
Opening stock - 30,000
Closing stock - 40,000
Purchases - 5,60,000
Return outwards - 15,000
Return inward - 20,000
Carriage inward - 5,000
If the gross profit is 20% of net sales , the gross sales for the month of June 2011 is what........????/
Ist approach :
Opening stock + purchases + carriage inward - return outward - closing stock = 5,40,000.....which I considered it as 80% of sales.....den for 100% we should calculate it as 5,40,000/.8 = 6,75,000.....!!!! Then with this amt add the net sales , then we get 6,95,000 as
gross sales ......!!!!
IInd approach :
Opening stock + purchases +
carriage inward - return outward - closing stock = 5,40,000...then nw less less 20% from return inward....so tat we can get the cost of goods returned .......!!!! So add this to 5,40,000 i.e 5,40,000+16,000=5,56,000......!!!! Then nw 5,56,000/.8 = 6,95,000.....!!!!!
Nw plzzz suggest me which one is right approach .......?????
27 November 2012
II nd approach is correct one. Even the Return Inward is to be shown at cost to reflect correct Gross Profit
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