If the gross profit is 20% of net sales , the gross sales for the month of June 2011 is what........????/
Ist approach : Opening stock + purchases + carriage inward - return outward - closing stock = 5,40,000.....which I considered it as 80% of sales.....den for 100% we should calculate it as 5,40,000/.8 = 6,75,000.....!!!! Then with this amt add the net sales , then we get 6,95,000 as gross sales ......!!!!
IInd approach :
Opening stock + purchases + carriage inward - return outward - closing stock = 5,40,000...then nw less less 20% from return inward....so tat we can get the cost of goods returned .......!!!! So add this to 5,40,000 i.e 5,40,000+16,000=5,56,000......!!!! Then nw 5,56,000/.8 = 6,95,000.....!!!!!
Nw plzzz suggest me which one is right approach .......?????
CAclubindia
