Net Sales for the year ended 31st March, 2019 is Rs 9,00,000. If Gross Profit is 25% of Cost, find Gross Profit and Cost of Goods Sold

Explanation

Gross Profit `= 25%` of Cost
`:.` If Cost is Rs 100, Gross Profit `= Rs 25` and Sales = Rs 125
If Sale is Rs 9,00,000, Gross Profit `= Rs 9,00,000 xx Rs 25//Rs 125 = Rs 1,80,000`
Cost of Goods Sold `= Rs 9,00,000 - Rs 1,80,000 = Rs 7,20,000`