You are requr to calculate the following: 1 Net sale, 2 cost of goods available for sale, 3 Gross Profit In…

Question

You are requr to calculate the following: 1 Net sale, 2 cost of goods available for sale, 3 Gross Profit In the of Khaddigah Trading account the for year ended...

ScanSolve AI Tutor · Accepted Answer

Here are the calculations based on the provided data:

1. Net Sale
Net Sale is calculated by subtracting Return Inward (Sales Returns) from Sales.

Identify Sales and Return Inward.
Sales = GMD 75,000
Return Inward = GMD 8,000
Calculate Net Sale.
$\text{Net Sale} = \text{Sales} - \text{Return Inward}$ $\text{Net Sale} = \text{GMD } 75,000 - \text{GMD } 8,000$ $\text{Net Sale} = \text{GMD } 67,000$
The net sale is $\boxed{\text{GMD } 67,000}$ .

2. Cost of goods available for sale
Cost of goods available for sale is calculated as Opening Stock + Net Purchases + Direct Expenses. First, we need to calculate Net Purchases.
Calculate Net Purchases.
Net Purchases = Purchases - Return Outward + Carriage Inward
Purchases = GMD 45,000
Return Outward = GMD 5,670
Carriage Inward = GMD 120
$\text{Net Purchases} = \text{GMD } 45,000 - \text{GMD } 5,670 + \text{GMD } 120$ $\text{Net Purchases} = \text{GMD } 39,330 + \text{GMD } 120$ $\text{Net Purchases} = \text{GMD } 39,450$
Calculate Cost of goods available for sale.
Opening Stock = GMD 10,000
$\text{Cost of goods available for sale} = \text{Opening Stock} + \text{Net Purchases}$ $\text{Cost of goods available for sale} = \text{GMD } 10,000 + \text{GMD } 39,450$ $\text{Cost of goods available for sale} = \text{GMD } 49,450$
The cost of goods available for sale is $\boxed{\text{GMD } 49,450}$ .

3. Gross Profit
Gross Profit is calculated as Net Sales - Cost of Goods Sold. First, we need to calculate Cost of Goods Sold.
Calculate Cost of Goods Sold.
Cost of Goods Sold = Cost of goods available for sale - Closing Stock
Cost of goods available for sale = GMD 49,450 (from previous calculation)
Closing Stock = GMD 12,000
$\text{Cost of Goods Sold} = \text{GMD } 49,450 - \text{GMD } 12,000$ $\text{Cost of Goods Sold} = \text{GMD } 37,450$
Calculate Gross Profit.
Gross Profit = Net Sales - Cost of Goods Sold
Net Sales = GMD 67,000 (from previous calculation)
$\text{Gross Profit} = \text{GMD } 67,000 - \text{GMD } 37,450$ $\text{Gross Profit} = \text{GMD } 29,550$
The gross profit is $\boxed{\text{GMD } 29,550}$ .

You are requr to calculate the following: 1 Net sale, 2 cost of goods available for sale, 3 Gross Profit In the of Khaddigah Trading account the for year ended...

Step-by-step solution

Identify Sales and Return Inward.

Calculate Net Sale.

Calculate Net Purchases.

Calculate Cost of goods available for sale.

Calculate Cost of Goods Sold.

Calculate Gross Profit.

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