Question

Calculate closing stock from the following details:

	₹
Opening Stock	4,80,000
Purchase	13,60,000
Sales	19,50,000

G.P. is 30% on Cost.

Answer 1

$\begin{array}{l}\text{Gross Profit = 30\% on Cost}\\ \text{Let the Cost of Goods sold be '}x\text{'}\\ \text{Gross Profit =}\frac{30}{100}x\\ \\ \text{Cost of Good Sold = Sales}-\text{Gross Profit}\\ x\text{= 19,50,000}-\frac{30}{100}x\\ x\text{+}\frac{30}{100}x\text{= 19,50,000}\\ \frac{100x\text{+ 30}x}{100}=19,50,000\\ x\text{=}\frac{19,50,000\times \text{100}}{130}=\text{Rs}15,00,000\\ \\ \text{Cost of Good Sold = Opening Stock + Net Purchases + Direct Expenses}-\text{Closing Stock}\\ \text{15,00,000 = 4,80,000 + 13,60,}0\text{00 + 0}-\text{Closing Stock}\\ \text{Closing Stock = 18,40,000}-\text{15,00,000}\\ \text{= Rs 3,40,000}\end{array}$