From the following balances taken from the books of Simmi and Vimmi Ltd.    (5 marks)

for the year ending March 31, 2017, calculate the gross profit.

                                                          Rs

Closing stock                                   2,50,000

Net sales during the year              40,00,000

Net purchases during the year      15,00,000

Opening stock                               15,00,000

Direct expenses                                 80,000