Question

Calculate Gross profit : Ope,ning stock Rs. 10,000, Purchases Rs. 50,000, Sales Rs. 1,00,000 and Closing stock Rs.5,000.
What are adjustment entries?​

Answer 1

Answer:

opening stock. 10,0000

add: purchase. 50,000

less: closing stock. (5,000)

cost of good sold. 55,000

gross profit= sales -cost

gross profit= 100,000-55,000

gross profit=45,000

entries;

Account receivable (dr). 100,0000

sales (cr). 100,000

cost of good sold(dr). 55,000

inventory(cr). 55,000