Practical Problem 14

SOLUTION:

Net sales = Sales – Sales return

                = 2,70,000 – 20,000

                = ₹ 2,50,000

Cost of goods sold = Opening stock + Net purchase – Closing stock

                               = 45,000 + 1,50,000 – 25,000

                               = ₹ 1,70,000

Gross profit = Net sales – Cost of goods sold

                   = 2,50,000 – 1,70,000

                   = ₹ 80,000

Gross Profit ratio = (Gross Profit)/(Net Sales) × 100

∴ Gross Profit Ratio =80,000/2,50,000 x 100

∴ Gross Profit Ratio = 32%