Sales--------------- 120,000
Purchase-----------100,000
Opening stock-----10,000
Closing stock------20,000

The gross profit or loss is?

A.

Le 30,000 profit

B.

Le 20,000 profit

C.

Le 10,000 loss

D.

Le 30,000 loss

Correct answer is A

Opening stock-------------       10,000      Sales --------- 120,000
Purchase-------------------      100,000
                                            110,000
Less: Closing stock-----------20,000
Cost of goods sold-------       90,000                              90,000
Gross profit                                                                    30,000