Question

From the following details calculate Opening stock.
Purchases Rs. 1,50,000
Manufacturing expenses = Rs. 30,000
Selling and distribution expenses = Rs. 20,000
Administrative expenses = Rs. 10,000
Financial expenses = Rs. 5000
Sales Rs. 2,40,000
Closing stock Rs. 30,000
Gross profit 25 % on sale

• A. Rs. 65,000
• B. Rs. 30,000
• C. Rs. 85,000
• D. Rs. 95,000

Answer 1

Answer: (B)

Rs. 30,000

Calculation of Opening stock = (Sales + closing stock ) - (Purchase + manufacturing expense + Gross Profit*)

=( 240000 + 30000 ) - ( 150000 + 30000 + 60000)

= Rs 30000

Gross profit = 240000 * 25/100

= 60000