To calculate the gross profit, we need to subtract the cost of goods sold (COGS) from the total sales revenue.
First, we need to calculate the COGS:
Opening stock + Purchases + Carriage inwards - Closing stock = COGS
₦28,000 + ₦128,000 + ₦4,000 - ₦10,000 = ₦150,000
Next, we can calculate the gross profit:
Sales - COGS = Gross profit
₦232,000 - ₦150,000 = ₦82,000
Therefore, the gross profit for this business is ₦82,000.
Gross profit is a measure of how much profit a business makes after deducting the cost of goods sold. In this case, the business had sales revenue of ₦232,000, but it cost them ₦150,000 to produce the goods that they sold. Therefore, they made a gross profit of ₦82,000. This money can be used to pay for other expenses, such as salaries, rent, and utilities, or reinvested in the business for growth.