Question

5. The following information is given relating to Venu Company for the year ending
31-3-2016
Stock turn over ratio = 6 times
Gross profit ratio
= 20% on sales
Sales
= Rs. 3,00,000
Closing stock is Rs. 15,000 more than opening stock.
Opening creditors = Rs. 30,000
Closing creditors
= Rs. 45,000
Find out :
a) Average stock
b) Average payment period
c) Purchases​

Answer 1

Answer:

Explanation:

ANSWER:

Cost of Goods Sold = Opening Stock + Purchases + Carriage Inwards − Closing Stock

= 20,000 + 50,000 + 5,000 − 10,000 = 65,000