Question

Rs.
Opening Stock 40,000
Closing Stock 50,000
Sales 70,000
Assuming there is no gross profit and direct expenses, the purchases made during the year are _____________.

• A. Rs. 80,000
• B. Rs. 90,000
• C. Rs. 1,10,000
• D. Rs. 1,60,000

Answer 1

Answer: (A)

Rs. 80,000

Here, there is no gross profit or direct expenses. So, the purchases made during the year shall be calculated as follows:

PARTICULARS	AMT RS.
OPENING STOCK	40,000
LESS: CLOSING STOCK	50,000
LESS: SALES	70,000
PURCHASES MADE DURING THE YEAR	80,000