Question

9. Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, the rate
of gross profit 50% on cost then the stock destroyed by fire will be:
​

Answer 1

A correct answer is option (a) 14,740.

What are purchases and sales?

• A person can obtain the ownership of certain items or properties in his name from another party through the procedure of purchase in exchange for payment of money.

• Similar to this, a sale is a procedure wherein ownership of certain items or properties is transferred from one person (the seller) to another (the buyer), in exchange for a fee.

• When a company buys products or services from a third party on credit, an entry for the purchase credit is made in the purchasing journal. In the company's purchasing journal, the purchases account will be debited and the accounts the payable account will be credited.

The complete question is 9.Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:(a)14,740(b)27,740(c)36,000(d)None of above.

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