Have doubt regaring Gross Sales question

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Consider the following data pertaining to CAS Ltd. For the month of march 2023:
Opening stock 60,000,
Closing stock 80,000,
Purchases 11,20,000,
Returns outwards 30,000,
Return inward 40,000,
Carriage inward 10,000.
If the gross profit is 20% of the net sales, the gross sales for the month of march 2023 is:
A.13,80,000.
B.13,50,000.
C.10,80,000.
D.13,37,500.
What is the correct answer??
The author in the book has marked option A as answer, but I feel it's wrong. Can anybody solve this ? my answer is 13,90,000.

Replies (11)

Is the data is properly copied from the book?

I think the purchase should be 11.50 L

GP is 20% of net sales, which would be 11.50L, i.e, 11.5 0 * 1.20  = 13.80L

In my opinion as question is asking about the Gross sales as without consideration of Sales returns if we calculate on the basis of that COGS will come out of Rs. 10,80,000 which 80% of the total sales as Total gross sales will be 13,50,000

Correct me if I m wrong

Thank you for all your replies, iam still confused as why the option is A.

please do not consider my earlier reply I made mistake in that , your answer 13 lacs 90 is correct  in following  way  

Gross profit percentage formula 

Gross profit % = Gross profit / Net Sale *100 

As per answer A Gross Sale is 13 lacs 90 thousand , so net sale is 13 lacs 50 thousand 

( net Sale = 13 lacs 90 thousand less 40 thousand return inward

Gross profit is 20 % of  net sale = 270000

so put the figures  in above  formula 

Gross profit percentage  % = 2 lacs 70 thousand / 13 lacs 50 thousand *100

 So answer is 20 % 

Therefore  your  Answer  1390000/- Gross profit  absolutely  correct , may be printing mistake . 

Check ones again , take more Opinion . 

As per my above reply your Gross sale figure  1390000/- is correct . following figures are given in your query . 

                                                                 Trading  Account 

oping Stock                             60000                   Gross  sale  1390000 

purchase        11,20,, 000                         less  return Inward     40000     13,50,000

less  ret/out         30, 000    10,90,000

Carriage Inward                      10 ,000 

Gross  profit                          2,70,000             Closing  Stock                     80000            

                                          ----------------                                                       ---------                                                      14,30 ,000                                                                  14,30,000  

please View  this reply on Desktop Computer  

              

Cost of goods sold calculation is different

Thank you for your answer 🙏🏻 😊 

You are welcome...
Pictorial representation can be made.
Nonsense reply by Sabyasachi Mukherjee


CCI Pro

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