SEO Sai Gr. Hosp.
208475 Points
Joined July 2016
Simple formula:: (Sales + closing stocks) --- (opening stock + Purchases) = Gross profit. (assuming no other factors)
In the present example, taking closing stock as Nil, Gross profit seems to be 2.00 Lakhs.
Additional GP to the extent of Closing stock.
So, Quite natural.