Question

Calculate the stock at the end:

        Stock in the beginning – Rs.5000

                  Cash sales – 15,000

        Credit sales – Rs.10,000

        Purchases – Rs.17,500

        Rate of gross profit on cost is 1/3.


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Answer 1

Answer:

Let cost of goods sold be X

cost of goods sold = sales - gross profit

X. =. (15000+10000) - X×1/3

X+ X/3 = 25000

4X/3= 25000

,X= 18750

cost of good sold = opening stock + net purchase + direct expense - closing stock

18750 = 5000+ 17500 -closing stock

closing stock = 3750

Answer 2

The stock at the end = Rs. 3,750

Step-by-Step Explanation:

Net Sales = Cash sales + Credit sales

⇒ 15,000 + 10,000

⇒ 25,000

Net Sales = 25,000

Let,

Cost of Goods Sold = x

Net Sales = x + 1/3 of x

⇒ 25,000 = 4x / 3

⇒ $25,000 = \: \dfrac{4x}{3}$

⇒ 25,000 × 3 = 4x

⇒ 75,000 = 4x

⇒ $x = \dfrac{75,000}{4}$

⇒ x = 18,750

Cost of Goods Sold = 18,750

Gross Profit = $\dfrac{18,750}{3}$

Gross Profit = 6,250

The stock at the end = (Stock in the beginning + Purchases + Gross Profit) - Total Sales

⇒ (5,000 + 17,500 + 6,250 ) - 25,000

⇒ 3,750

Therefore,

The stock at the end = Rs. 3,750