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Stock Adjustments

Closing inven...

Question

Closing inventory can be calculated as follows:

A

Sales - gross profit - opening inventory - purchases

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B

Sales - gross profit – opening inventory + purchases

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C

Sales - gross profit + opening inventory - purchases

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D

Sales - gross profit – opening inventory + purchases

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Solution

The correct option is A
Sales - gross profit - opening inventory - purchases

Closing Stock
= Sales - gross profit - opening inventory - purchases

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