Question

a business books show following information purchase ₹25000,sales₹30000 and closing stock ₹5000.if gross profit is 10%on sales then calculate opening capital​

Answer 1

Answer:

7000/-(opening stock)

Explanation:

prepare trading account

put

opening stock-...

purchases- 25000 on debit side

put sales and closing stock on credit side

Now its given 10% is gross profit on sales= calculate 10% of 30,000=3,000

so gross profit=3000

trading account has to be equal so equate dr and cr side

cr side(total)= 35,000

so dr side should be 35000

so opening stock+purchases+gross profit= 35000

we have purchases and gross profit

so opening stock = 35000-28000=7000

so 7000 is opening stock

Hope it helps