Question

8. Calculate cost of goods and closing stock from the following particulars
Rs.
Stock at the beigning of the years
20,000
Net purchases
50,000
Carriage in wards
5,000
Sales
1,00,000
Gross profit
35,000​

Answer 1

Given :

• Opening Stock = 20,000

• Net Purchase = 50,000

• Carriage Inwards = 5,000

• Sales = 1,00,000

• Gross Profit = 35,000

To find :

• Closing stock

• Cost of Goods sold

Formulaes Used :

${\frak{\bullet \: {cost \: of \: goods \: sold \: = opening \: stock \: + net \: purchases + direct \: expenses}}} \\ {\frak{\bullet \: {closing \: stock \: = opening \: stock + purchases - cost \: of \: goods \: sold}}}$

Solution :

Cost of Goods sold :

$\to \sf \: 20000 + 50000 + 5000 \\ \\ \to\sf \: 75000$

∴ Cost of Goods Sold = 75,000

Closing Stock :

$\to \sf 20000 + 50000 - 75000 \\ \\\sf \to \: 75000 - 70000 \\ \\ \sf\to \: 5000$

∴ Closing Stock = 5000.

Extra Formulaes :

• ) Gross Profit = Net sales - Cost of Goods Sold

• ) Net sales = Gross Sales - Sales Return

• ) Net Purchases = Gross Purchase - Purchase Return.