Calculate Gross Profit when Totla Purchases during the year are Rs 8,00,000, Returns Outward Rs 20,000, Direct Expenses Rs 60,000 and 2/3rd of the goods are sold for Rs 6,10,000.

Explanation

Cost of Goods Sold = Total Purchases - Returns Outward + Direct Expenses
`= Rs 8,00,000 - Rs 20,000 + Rs 60,000 = Rs 8,40,000`
A. 2/3rd of the Goods sold for Rs 6,10,000
B. 2/3rd Cost of Goods Sold `= Rs 8,40,000 xx 2//3 = Rs 5,60,000`
Gross Profit `= A - B = Rs 6,10,000 - Rs 5,60,000 = Rs 50,000`