Question

Calculate the value of Closing Stock from the following particulars:

	₹		₹
Purchases	93,000	Wages	20,000
Sales	1,20,000	Carriage Outwards	3,200
Opening Stock	16,000	Rate of Gross Profit on Cost	25%

Answer 1

Rate of Gross Profit (on cost) = 25%
Rate of Gross Profit (on sales) = 20%
Gross Profit = 20% of 1,20,000 = 24,000
Gross Profit = Net Sales – Cost of Goods Sold
24,000 = 1,20,000 – Cost of Goods Sold
Cost of Goods Sold = 1,20,000 – 24,000 = Rs 96,000
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
96,000 = 16,000 + 93,000 + 20,000 – Closing Stock
Closing Stock = 16,000 + 93,000 + 20,000 – 96,000 = Rs 33,000