Question

A business has compiled the following information for the year ended 31 March 2018:

Particulars	Rs.
Opening Stock	4,50,000
Sales	12,90,000
Closing Stock	3,20,000

The gross loss during the year is Rs. 50,000.
Based on these figures, what is the amount of purchases made during the year?

• A. Rs. 10,10,000
• B. Rs. 11,10,000
• C. Rs. 12,10,000
• D. None of these

Answer 1

The correct option is C

Rs. 12,10,000

Purchases
= Sales + Closing stock + Gross loss - Opening stock

= Rs. 12,90,000 + Rs. 3,20,000 + Rs. 50,000 - Rs. 4,50,000

= Rs. 12,10,000