Question

Calculate the Stock at the end:

	₹
Stock in the beginning	20,000
Cash Sales	60,000
Credit Sales	40,000
Purchases	70,000
Rate of Gross Profit on Cost	1/3

Answer 1

Rate of Gross Profit on Cost = 1/3
Rate of Gross Profit on Sale = 1/4
Total Sales = Cash Sales + Credit Sales
Total Sales = 60,000 + 40,000 = 1,00,000
Gross Profit = ₹ 25,000 (1/4 of 1,00,000)
Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = 1,00,000 – 25,000 = ₹ 75,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
75,000 = 20,000 + 70,000 – Closing Stock
Closing Stock = ₹ 15,000