Question

Assertain the value of closing stock
opening stock - 120000
purchases during the year - 930000
sales during the year - 15,60,000
Rate of Gross Profit - 40% on Sales​

Answer 1

Answer:

The value of the closing stock is 114,000.

Explanation:

Given,

Opening Stock, OS = 120,000

Purchases during the year, P = 930,000

Sales during the year, S = 1,560,000

Rate of gross profit, GP = 40% on sales

∴ Gross Profit, GP = 40×1,560,000/100

⇒ GP = 4×156×1000

⇒ GP = 624,000

and, Gross Profit(GP) = Net Sales(s) - Cost of goods sold(CS)

⇒ Cost of goods sold(CS) = 1,560,000 - 624,000

⇒ Cost of goods sold(CS) = 936,000

also,

Cost of goods sold(CS) = Opening Stock(OS) + Purchases(P) - Closing Stock

⇒ Closing Stock = 120,000 + 930,000 - 936,000

⇒ Closing Stock = 114,000

Hence, the closing stock is 114,000.

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Answer 2

Answer:

Closing stock= 114000.

Explanation:

The quantity of unsold items still in the company's possession as of a particular date is referred to as closing stock. In other words, it is possible to say that this is stock that is currently being used and is awaiting sale.

The opening stalk = 120000

The purchases during the whole year= 930000

The sales during the year= 1560000

And the gross profit= 40% of the sales= 40× 1560000÷100 = 624000

We know, Gross Profit = Net Sales - Cost of goods sold

Cost of goods sold = 1560000 - 624000= 936000

And, Cost of goods sold = Opening Stock + Purchases - Closing Stock

So, Closing stock= Opening Stock + Purchases - Cost of goods sold

Therefore, Closing stock= 120000+930000-936000= 114000.

Hence, the calculated closing stock= 114000.

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