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Please solve. .
A sells goods at 20% Above cost. His sales were Rs.10,20,000 During the year. However, he sold damaged goods for Rs.20,000 Costing Rs.30,000. The sale is included in Rs.10,20,000. The amount of Gross profit will be? . . . . Ans. Is Rs.2,40,000. Please explain How.
Replies (13)
20% on cost so 25% on profie... Agree ?
Normal Goods 10,00,000/-.
Gross Profit = 10,00,000 * 25% = 250,000/-.
less : Loss on damaged Goods = (10,000)
Net G.P. 240,000
sorry, I can't understand how 25% on profit? please explain...
If i am not wrong answer should be 1,56,667.
On 10lacs he will earn profit of Rs. 1,66,667 and on sale of goods costing rs 30000 sold at 20000 will incurr loss of rs 10000.
Therfore my profit will be 1,66,667 - 10,000 = 1,56,667.
but answer is Rs.2,40,000
20% on cost is 16.66% on sales.
Hey shubham are you sure answer is 2,40,000?
And what according to you should be the answer?
According to me, answer should be same as you had solved. I think answer is wrong.
Ya i also think 2,40,000 is the wrong answer. Then to confirm with some professor if u go to classes.
Agree with Mehul's Working and Solution
| Originally posted by : Mehul Gada | ||
 |
If i am not wrong answer should be 1,56,667. On 10lacs he will earn profit of Rs. 1,66,667 and on sale of goods costing rs 30000 sold at 20000 will incurr loss of rs 10000. Therfore my profit will be 1,66,667 - 10,000 = 1,56,667. |
 |
This is correct.
| Originally posted by : Bhargav Nathwani | ||
|
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20% on cost so 25% on profie... Agree ? Normal Goods 10,00,000/-. Gross Profit = 10,00,000 * 25% = 250,000/-. less : Loss on damaged Goods = (10,000) Net G.P. 240,000 |
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Profit % on sales will be lower than the cost..
If 20% on cost then it will be 16.6666% on sales.
Sunitha & Bhargav : You need to clarify your basic concepts regarding Cost + Profit = Sales.
Cost = 100
Profit = 20 (Given 20% profit on cost)
Sales = Cost + Profi
= 120
Now Profit on sales will be
20 divided by 120 which will come to 16.67%
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