Question

A firm sells goods at Cost plus 25%. Sales to credit customers ( of total) was ₹1,80,000. His Opening and Closing Stocks were ₹ 20,000 and ₹ 15,000 respectively. Find out the value of Purchases.

Answer 1

${\boxed{\bf{Correct\:question\: :-}}}$

A firm sells goods at Cost plus 25%. Sales to credit customers (¾ of total) was ₹1,80,000. His Opening and Closing Stocks were ₹ 20,000 and ₹ 15,000 respectively. Find out the value of Purchases.

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${\boxed{\bf{Solution\: :-}}}$

$\bullet\:\sf Credit\: sales = Rs.180000$

$\bullet\:\sf Closing\: stock = Rs.15000$

• Opening stock = Rs.20000

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Credit sales(¾ of total) = Rs.180000

• Let the total sales be x

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↬ ¾ of total sales = 180000⠀⠀⠀⠀⠀

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↬ ¾ × x = 180000

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↬ x = 180000 × 3/4

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↬ x = Rs.240000

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∴ Total sales = Rs.240000

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A firm sells goods at Cost plus 25%.

• Let the cost be y

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↬ Total sales = Cost of goods sold + 25% of sells

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↬ 240000 = y + $\sf \dfrac{25y}{100}$

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↬ 240000 = y + $\sf \dfrac{y}{4}$

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↬ 240000 = 4y + $\sf \dfrac{y}{4}$

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↬ 240000 = $\sf \dfrac{5y}{4}$

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↬ y = $\sf \dfrac{240000 \times 4}{5}$⠀⠀⠀⠀

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↬ y = 192000

• Cost of goods sold = Rs.192000

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As we know that

• Gross profit = Net sales - Cost of goods sold

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↬ G.P = 240000 - 192000

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↬ G.P = Rs.48000

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•°• Gross profit = Rs.48000

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Let's find out purchases

• Cost of goods sold = Opening stock + Net purchases - Closing stock

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↬ Net purchases = Cost of goods sold - Opening stock + Closing stock

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↬ Net purchases = 192000 - 20000 + 15000

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↬ Net purchases = 192000 - 5000

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↬ Net purchases = 187000

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∴ Net purchases = Rs.187000

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