calculate closing stock
Answers
Given
opening stock =20000
Cash sales = 60000
credit sales = 40000
purchases = 70000
gross profit on cost = 33 1/3 % or 1/3
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solution
Total sales = cash sales + credit sales
= 60000+40000
=100000
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gross profit on sales = 1/4
therefore gross profit = sales *1/4
=100000*1/4
=25000
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Cost of goods sold = sales - gross profit
=100000- 25000
= 75000
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Cost of goods sold = opening stock + purchases -closing stock
75000 = 20000+ 70000 - closing stock
75000 =90000 - closing stock
closing stock = 90000-75000
closing stock = 15000