Accountancy, asked by abhinavbansal211, 1 month ago

Calculate cost of goods sold and closing stock from the following: Sales Rs 5,40,000 ; sales returns Rs 16,000 ; Gross Profit Rs 1,20,000 ; Opening Stock Rs 20,000 ; Purchases Rs 4,00,000 ; Purchases Return Rs 4,000 ; Carriage Inward Rs 15,000

Answers

Answered by TRISHNADEVI

ANSWER :

$\\$

❖ If Sales is Rs. 5,40,000; Sales Returns is Rs. 16,000; Gross Profit is Rs. 1,20,000; Opening Stock is Rs.20,000; Purchases is Rs. 4,00,000; Purchases Return is Rs. 4,000 and Carriage Inward is Rs. 15,000; then the Cost of Goods Sold is Rs. 4,04,000 and Closing Stock is Rs. 27,000.

__________________________________________________________

SOLUTION :

$\\ \\$

❒ Given :-

Sales = Rs. 5,40,000

Sales returns = Rs. 16,000

Gross Profit = Rs. 1,20,000

Opening Stock = Rs. 20,000

Purchases = Rs. 4,00,000

Purchases Return = Rs. 4,000

Carriage Inward. Rs 15,000

$\\$

❒ To Find :-

Cost of Goods Sold = ?

Closing Stock = ?

____________________________________________

❒ Calculation of Cost of Goods Sold :-

$\\$

We know that,

★ Gross Profit = Net Sales - Cost of Goods Sold

➜ Cost of Goods Sold = Net Sales - Gross Profit

$\\$

Now,

Sales = Rs. 5,40,000

Sales Returns = Rs. 16,000

∴ Net Sales = Sales - Sales Returns

➞ Net Sales = Rs. 5,40,000 - Rs. 16,000

➞ Net Sales = Rs. 5,24,000

$\\$

We have,

Net Sales = Rs. 5,24,000

Gross Profit = Rs. 1,20,000

$\\$

★ Cost of Goods Sold = Net Sales - Gross Profit

➨ Cost of Goods Sold = Rs. 5,24,000 - Rs. 1,20,000

∴ Cost of Goods Sold = Rs. 4,04,000 ✪

✎ Hence, the Cost of Goods Sold is Rs. 4,04,000.

__________________________________________________

❒ Calculation of Closing Stock :-

$\\$

We know that,

★ Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses - Closing Stock

➜ Closing Stock = Opening Stock + Net Purchases + Direct Expenses - Cost of Goods Sold

$\\$

Now,

Purchases = Rs. 4,00,000

Purchases Return = Rs. 4,000

∴ Net Purchases = Purchases - Purchases Returns

➞ Net Purchases = Rs. 4,00,000 - Rs. 4,000

➞ Net Purchases = Rs. 3,96,000

$\\$

We have,

Opening Stock = Rs. 20,000

Net Purchases = Rs. 3,96,000

Direct Expenses = Rs. 15,000 (Carriage Inward)

Cost of Goods Sold = Rs. 4,04,000

$\\$

★ Closing Stock = Opening Stock + Net Purchases + Direct Expenses - Cost of Goods Sold

➨ Closing Stock = Rs. 20,000 + Rs. 3,96,000 + Rs. 15,000 - Rs. 4,04,000

➨ Closing Stock = Rs. 4,31,000 - Rs. 4,04,000

∴ Closing Stock = Rs. 27,000 ✪

✎ Hence, the Closing Stock is Rs. 27,000.

Previous Question

Next Question