Question

Calculate the value of closing stock from the following information purchase is equal to 93000 wages is equal to 20000 sales is equal to 120000 carriage outward is equal to 3200 opening stock is equal to 16000 rate of gross profit 25 on cost

Answer 1

Answer:

Closing Stock = 33000

Explanation:

Revenue from operations = Sales =120000.

Cost of Revenue from operations = Revenue from operations- Gross Profit.

Let the cost of Revenue from operations be x.

x = 120000- x/4

5x/4=120000

5x= 480000

x= 96000. Cost of Revenue from operations =96000.

Cost of Revenue from operations = Opening Stock +Purchases +Wages - Closing Stock.

Closing Stock = 16000+ 93000+20000-96000

=33000.Ans.

Answer 2

Answer:

Closing Capital=33,000

Explanation:

Cost of sales=sales-gross profit.

x=1,20,000-x/4

x/4+x=1,20,000

5x/4=1,20,000

x=96,000

So, now we have cost of sales.

Cost of sales=Opening Inventory +purchases +Wages - Closing Stock

96000=16000+93000+20000-x

x=16000+93000+20000-96000

x=33000