Calculate Gross Profit from the following information.

Cash Sales - 25% of Total Sale
Purchases - 7,00,000
Credit Sales - 9,00,000
Excess of Closing Inventory over Opening Inventory- 50,000

₹5,50,000

COGS= Purchase - Excess of closing inventory over opening inventory
         = 700000 - 50000
         = 650000
Total Sales = Cash Sales + Credit Sales
Let total sales = x
       x  = 25% of x + 75% of x
       x = 25% of x + 900000
      x - 25% of x = 900000
      x -25/100x = 900000
     x = 900000 x 100/75
        = ₹1200000
Total sales =₹1200000
Gross Profit = Sales - COGS
                   = 1200000 - 650000
                   = 550000