Question

A. Find cost of goods sold and closing stock from the following information:
Sales Rs. 4,30,000, Return Inward Rs. 5,000, Gross Profit Rs.1,00,000, Opening stock
Rs. 35,000, Purchases Rs. 2,85,000, Wages Rs. 27,000, Other Direct Expenses Rs. 16,000.
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Answer 1

Answer:

Net sales = sales - return inward

= 430000-5000=425000

Cost of goods sold = net sales - gross profit

= 425000-100000

=325000

Cost of goods sold = opening stock + purchase + direct expense -closing stock

325000 = 35000 +285000+27000+16000-closing stock

closing stock = 363000-325000

= 38000

Answer 2

Answer:

Cost of Goods Sold = Rs. 3,25,000

and Closing Stock = Rs. 38,000

Explanation:

Given :

• Sales = Rs. 4,30,000
• Return Inward = Rs. 5,000
• Gross Profit = Rs. 1,00,000
• Opening stock = Rs. 35,000
• Purchases = Rs. 2,85,000
• Wages = Rs. 27,000
• Other Direct Expenses = Rs. 16,000

To find :

• Cost of Goods Sold and Closing Stock

Solution :

Net Sales = Sales - Return Inward

$\longrightarrow$ 4,30,000 - 5,000

$\longrightarrow$ 4,25,000

Net Sales = Rs. 4,25,000

Gross Profit = Net Sales - Cost of Goods Sold

$\longrightarrow$ 1,00,000 = 4,25,000 - Cost of Goods Sold

$\longrightarrow$ Cost of Goods Sold = 4,25,000 - 1,00,000

$\longrightarrow$ Cost of Goods Sold = 3,25,000

Cost of Goods Sold = Rs. 3,25,000

★ Closing Stock :

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses - Closing Stock

$\longrightarrow$ 3,25,000 = 35,000 + 2,85,000 + (27,000 + 16,000) - Closing Stock

$\longrightarrow$ 3,25,000 = 3,63,000 - Closing Stock

$\longrightarrow$ Closing Stock = 3,63,000 - 3,25,000

Closing Stock = Rs. 38,000

∴ Cost of Goods Sold = Rs. 3,25,000

and Closing Stock = Rs. 38,000