Use the following information to answer below

GH⊄
Sales 200000
Purchase 170000
Opening stock 40000
Closing stock 50000

 

A. 10%
B. 20%
C. 25%
D. 15%

Correct Answer:

Option B = 20%

Explanation

Gross profit percentage = Gross profit/Sales x 100

Cost of goods sold = 40,000 + 170,000 – 50,000
= 160,000

Gross profit = 200,000 – 160,000
= 40,000

Gross profit % = 40,000/200,000 x 100

= 20%

SEE ALSO  The profit and loss in joint venture with B account in the ledger of A.

Copyright warnings! Do not copy.