Question

Find the cost of goods sold from the following details:
Purchases Rs. 20,000

Closing stock Rs. 5,000.

• A. $Rs.15,000$
• B. $Rs.25,000$
• C. $Rs.20,000$
• D. $Rs.22,500$

Answer 1

Answer: (A)

$Rs.15,000$

Purchases = Cost of goods + Closing stock

$Rs.20,000$ = Cost of goods sold + $Rs.5,000$

Cost of goods sold= $Rs.20,000$ - $Rs.5,000$

Cost of goods sold = $Rs.15,000$