Question

Calculate closing stock from the following details opening stock Rs. 20,000; cash sales Rs. 60,000; credit sales Rs. 40,000; purchases Rs. 70,000. Rate of gross profit on cost $33\frac{1}{3}\%$.

Answer 1

Total Sales
= Cash Sales + Credit Sales
= Rs. 60,000 + Rs. 40,000
= Rs. 1,00,000

Let cost = Rs. 100, Gross profit = $33\frac{1}{3}\%$ on cost,
Sales = Rs. 100 + Rs. $33\frac{1}{3}$ $=Rs.133\frac{1}{3}$

Gross Profit on Sales $=Rs.33\frac{1}{3}÷Rs.133\frac{1}{3}\times 100$ = 25%

Gross Profit = ($Rs.1,00,000\times 25$%) = Rs. 25,000

Cost of Goods Sold
= Sales - Gross Profit
= Rs. 1,00,000 - Rs. 25,000
= Rs. 75,000

Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
So, Closing stock
= Opening Stock + Purchases - Cost of Goods Sold
= Rs. 20,000 + Rs. 70,000 - Rs. 75,000
= Rs. 15,000.