Question

Find out the amount of sales from the following information:

Particulars	₹	Particulars	₹
Opening stock	30,000	Closing stock	20,000
Purchases less returns	2,00,000	Gross profit margin (on sales)	30%

Answer 1

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

= 30,000 + 2,00,000 – 20,000

= ₹ 2,10,000

Let the sales be	100
Less: Gross profit (30% on sales i.e,100)	30
Cost of goods sold	70

Therefore percentage of gross profit on cost of goods sold is `30/70 xx 100` = 42.86%

Gross profit = 42.86% on ₹ 2,10,000

i.e. = `(42.86)/100 xx 2,10,000`

= 90,000

Sales = Cost of goods sold + Gross profit

= 2,10,000 + 90,000

Sales = ₹ 3,00,000