Question

Ascertain the value of Closing Stock from the following:

	₹
Stock in the beginning	18,000
Purchases	69,000
Sales	1,02,000
Sales Return	2,000
Freight	10,000

Rate of G.P. on cost is 25%.

Answer 1

Rate of Gross Profit (on cost) = 25%

Rate of Gross Profit (on sales) = 20%

Gross Profit = 20% of 1,00,000 = 20,000

Gross Profit = Net Sales – Cost of Goods Sold

20,000 = 1,00,000 – Cost of Goods Sold

Cost of Goods Sold = 1,00,000 – 20,000 = ₹ 80,000

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

80,000 = 18,000 + 69,000 + 10,000 – Closing Stock

Closing Stock = 18,000 + 69,000 + 10,000 – 80,000 = ₹ 17,000