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9. From the following information calculate Gross Profit Ratio: 2 Cost of goods sold Rs. 900000, Sales Rs. 1200000.Which items are included in Current Assets ? (any four)Or​

Answer»

rong>SOLUTION :

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❒ Given :-

  • Cost of Goods Sold = Rs. 900000

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❒ To Find :-

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❒ Required Formula :-

  • ★ Gross Profit = Net Sales — Cost of Goods Sold

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❒ Calculation :-

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[ As sales return is not mentioned in the question, therefore, sales is considered as Net Sales. ]

Using the formula of Gross Profit,

  • ★ Gross Profit = Net Sales — Cost of Goods Sold

➜ Gross Profit = Rs. 1200000 — Rs. 900000

∴ Gross Profit = Rs. 300000 ✪

  • Hence, the Gross Profit is Rs. 300000.

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ANSWER :

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❍ Current Assets :-

  • ✎ Current assets include those assets which are meant for sale or which can be converted into cash within a short period of one year. Current assets are those assets which are made or ACQUIRED and help for a certain period of time with a view to reselling them at a profit in the ordinary course of business.

❍ Example of some Current assets are :-

  • ✎ Debtors

  • ✎Cash in Hand

  • ✎ Cash at Bank

  • ✎ Bill Receivable

  • ✎ Prepaid Expenses

  • ✎ Accrued Income


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