Question

From the following details calculate Purchase of XYZ Ltd.
Opening stock = 15,000
Manufacturing expenses = Rs. 30,000
Selling and distribution expenses= Rs. 20,000
Administrative expenses = Rs. 10,000
Financial expenses = Rs. 5,000
Sales Rs. 2,40,000
Closing stock Rs. 30,000
Gross profit on sales 25 %

• A. Rs. 1,25,000
• B. Rs. 1,65,000
• C. Rs. 1,20,000
• D. Rs.1,15,000

Answer 1

The correct option is B Rs. 1,65,000

Solution to the given problem is as under:

Trading Account

Particuars Amount Particulars Amount

To Opening Stock 15000 By Sales 240000

To Manufacturing Exp 30000 By Closing Stock 30000

To Purchases (Balancing) 165000

To Gross Profit 60000

(25% of Sales)

---------------- ----------------

270000 270000

------------------ ---------------

Selling & Distributio expense, administrative expense and financial expenses are not part of Trading account.