Moiz

in reply to...
http://www.xtremepapers.com/community/threads/accounts-eco-business-post-your-doubts-here.10459/page-5#post-161633

There is no opening stock, which means that the Selling Price of the goods Purchased will be $500,000+$50,000. Their cost is $450,000. This means Cost/Selling Price=450000/550000. The COST of Closing stock will hence be $50,000 x (450/550) = $40,909.
Therefore Gross Profit = $500,000 - ($450,000-$40,909) = $90,909