What if COLLECTIONS and GP RATE are not given? How to compute RGP?

Compute GP
Rates
For Prior Year/s
Sales:
DGP, Beg
Inst A/R, Beg
For Current
Year:
GP [DGP,end]

Cash

Look for collection then

compute RGP
Inst A/R, Beg * GP Rate = DGP,
Beg
(Inst A/R, Def * GP Rate) = (DGP,
Def)
(Inst A/R, w/o * GP Rate) = (DGP,
w/o)

T-in Merch (MV before RC = FMV ; yung may

computation)

Downpayment
Inst Collection (# of months * monthly inst)
TOTAL COLLECTIONS
* GP Rate
RGP on Inst Sales of the New Merchandise

Total Collections (Cash DP

+PP)
(Int Inc)
Collections as to Principal
* GP Rate
RGP

xx
Inst A/R
xx
Int Inc

DATE

Cash Collection
(Debit)

Collection as to
Interest
(Interest Income)
(Credit)

Collection as to
Principal
(Inst A/R)
(Credit)

Unpaid Balance
(Outstanding
Principal)
Inst Sales

DP
Monthly Inst

4*%

DP

1-3

5-6

4-7

Sales
yearly
instalment
periodic

Periodic
If NO Instalment Payment given:

accounted for separately

from GP
recognized as interest
revenue at the time of cash
receipt

Portion of the
payment applied to
principal
Considered in the
computation of RGP

Original Balance of Installment A/R (Inst. Sale Cash

DP = Unpaid Balance)

Payment

PVad 1.10 = [(n+1)-1] %

NOTE : Inst A/R w/o is NOT DEDUCTED

Adjusted Sales (IS-OA/

+UA)
(Down Payment)
(Actual / FMV of Merch)
TOTAL PAYMENTS
/ # of Inst Payments
Payment of each
Instalment
* # of Paid Instalment
INSTALMENT

NADZ

RGP (remove any Int Inc)

GP on Reg Sales
Other Income (Gain on Sale ,
Int Inc)
(Operating Expense)
(Finance Cost) (Int Exp)
(Loss on Sale)
(Loss on Repossession)
NET INCOME / (LOSS)

To close other nominal

accounts:
Reg Sales
xx
Int Inc
xx
Cost of Sales
OpEx
Inc Summary

MARK-UP

MARK-UP

On Inst Sales ; 130% of cost

( Cost=100%)
Sales 230% GP% = 130%/230%
Cost 100% = 56.52%
GP
130%

On Reg Sales ; 20% on sales

( Sales=100%)
Sales 100%
Cost 80%
GP
20%

xx
xx
xx