Question

Calculate closing stock from the following details:

Particulars

Amount(₹)

Opening Stock

20,000

Cash Sales

65,000

Credit Sales

40,000

Net Purchases

70,000

Return outward

7,000

Return Inward

5,000

The rate of gross profit on cost 33 1/3 %.   ​

Answer 1

Answer:

Closing Stock = 8,000

Explanation:

Sales = Cash Sales + Credit Sales

$\longrightarrow$ 65,000 + 40,000 = 1,05,000

Net Sales = 1,05,000 - Return Inward

Net Sales = 1,05,000 - 5,000

$\longrightarrow$ 1,00,000

Net Sales = Rs 1,00,000

★ According to the Question :

The Rate of Gross Profit on Cost 33 1/3 %

Gross Profit on Cost = 33$\dfrac{1}{3}$%

Let,

Cost of Goods Sold = Rs 100

So

Gross Profit = Rs 33 ⅓

Sales = Cost of Goods Sold + Gross Profit

133⅓ = 100 + 33⅓

Sales = $\dfrac{33 \frac{1}{3} }{133 \frac{1}{3} }$ = $\dfrac{1}{4}$

Hence,

Gross Profit on Cost = $\dfrac{1}{3}$

Gross Profit on Sales = $\dfrac{1}{4}$

So,

Gross Profit on Sales = ¼

$\longrightarrow$ 1,00,000 × $\dfrac{1}{4}$

$\longrightarrow$ 25,000

Gross Profit = 25,000

Cost of Goods Sold = Sales - Gross Profit

$\longrightarrow$ 1,00,000 - 25,000

$\longrightarrow$ 75,000

Cost of Goods Sold = 75,000

Cost of Goods Sold = Opening Stock + (Net Purchases - Return outward) - Closing Stock

$\longrightarrow$ 75,000 = 20,000 + (70,000 - 7,000) - Closing Stock

$\longrightarrow$ 75,000 = 20,000 + 63,000 - Closing Stock

$\longrightarrow$ 75,000 = 83,000 - Closing Stock

$\longrightarrow$ Closing Stock = 83,000 - 75,000

$\longrightarrow$ Closing Stock = 8,000

Closing Stock = 8,000

∴ Closing Stock = 8,000