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Sales ₹2,00,000; Returns inwards ₹10,000; Opening stock ₹15,000; Purchases ₹1,30,000; Closing stock ₹20,000. Gross profit:

A₹65,000 net loss
B₹65,000 gross profit
C₹70,000 gross profit
D₹55,000 gross profit
Answer & Solution
Correct answer: B. ₹65,000 gross profit
1. Net sales = 2,00,000 − 10,000 = 1,90,000. 2. COGS = 15,000 + 1,30,000 − 20,000 = 1,25,000. 3. Gross profit = 1,90,000 − 1,25,000 = ₹65,000. _Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.3 example_
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