CA CPT 2013 June Question Paper Fundamentals of Accounting for online practice

Mr. A started business with a capital of Rs.10 lakhs as a cloth merchant. During the year he purchased goods worthRs.7,10,000 and sales during the year was Rs.8,42,000. He pays shop rent of Rs.20,000 for the year 2011-12, andother expenses Rs.75,000. Closing stock at the end of the year is Rs.45,000. What is gross profit?