Question

Sales $=$Rs. $11,000$, G.P. $=1/{10}^{th}$ on cost. Closing stock before these adjustments Rs. $1,00,000$. Closing stock after adjustment of sales will be _____________.

• A. Rs. $1,10,000$
• B. Rs. $90,000$
• C. Rs. $89,000$
• D. None

Answer 1

The correct option is B Rs. $90,000$

Sales= Rs. 11000, Gross Profit = 1/10th or 10% of cost price. So,
Gross Profit = 11000*10/110
Gross Profit = Rs. 1000
Cost Price = 11000-1000 = Rs. 10000
Closing Stock before these adjustment = Rs. 100000
Cost Price of goods sold = Rs. 10000
Closing Stock after adjustment of sales = Rs. 100000 - Rs. 10000
Closing Stock = Rs. 90000