Question

calculate closing stock if
cash sales 1.5 times of credit sales
credit sales 120000
purchases 140000
rate of gross profit 25% on cost. ​

Answer 1

Answer:

Explanation:

Closing Stock = 100,000

Explanation:

Given:

Credit sales = 120,000

Purchase = 140,000

Cash sales = 1.5 times of credit sales = 1.5 × 120,000 = 180,000

Gross profit = 25% on cost

Computation:

Total sales = Cost of goods sold + Gross profit

Credit sales + Cash sales = Cost of goods sold + 25% of Cost of goods sold

120,000 + 180,000 = Cost of goods sold + 0.25 Cost of goods sold

300,000 = 1.25 Cost of goods sold

Cost of goods sold = 240,000

Cost of goods sold = Opening Stock + Purchase - Closing Stock

240,000 = 0 + 140,000 - Closing Stock

Closing Stock = 100,000

Note: Assume there is no Opening stock

Answer 2

Answer:

Closing Stock = 1,00,000

Explanation:

Given :

Credit Sales = 1,20,000

Cash Sales = 1.5 times of Credit Sales

Purchases = 1,40,000

Rate of Gross Profit = 25 % on Cost

To find :

Calculate Closing Stock

Solution :

Credit Sales = 1,20,000

Cash Sales = 1.5 times of Credit Sales

$\longrightarrow$ Cash Sales = 1.5 × 1,20,000

$\longrightarrow$ Cash Sales = 1,80,000

Net Sales = Credit Sales + Cash Sales

$\longrightarrow$ Net Sales = 1,20,000 + 1,80,000

$\longrightarrow$ Net Sales = 3,00,000

Rate of Gross Profit = 25 % on Cost

Net Sales = Cost Of Goods Sold + Gross Profit

Let,

Cost Of Goods Sold = x

So,

Net Sales = x + 25 % of x

$\longrightarrow$ $3,00,000 \: = \: x \: + \: \dfrac{25}{100} x$

$\longrightarrow$ 3,00,000 = x + 0.25x

$\longrightarrow$ 3,00,000 = 1.25x

$\longrightarrow$ x = $\dfrac{3,00,000}{1.25}$

$\longrightarrow$ x = 2,40,000

Cost Of Goods Sold = 2,40,000

Cost Of Goods Sold = Purchases - Closing Stock

$\longrightarrow$ 2,40,000 = 1,40,000 - Closing Stock

$\longrightarrow$ Closing Stock = 2,40,000 - 1,40,000

Closing Stock = 1,00,000

∴ Closing Stock = 1,00,000