Question

calculate the value of opening stock if
Sales= Rs.240000
% of gross profit to sales = 20%
Purchases= Rs. 175000
Closing stock= Rs. 30000

Answer 1

Answer:

Explanation:

Closing stock = opening stock + purchase + Gross profit - sales

30,000 = OS + 1,75,000 + 48,000 - 2,40,000

30,000 = OS + 2,23000 - 2,40,000

30,000 = OS + 17,000

Opening stock = 30,000 + 17,000

= 47,000

Answer 2

Given:

Sales= Rs.2,40,000

% of gross profit to sales = 20%

Purchases= Rs.1,75,000

Closing stock= Rs.30,000

To find:

The value of opening stock

Solution:

The value of the opening stock is Rs.47,000.

We can find the value by following the given steps-

We know that the value of the opening stock can be calculated by obtaining the cost of goods sold.

The cost of goods sold=Sales-gross profit

The sales=Rs.2,40,000

Gross profit=20% of sales

=20% of 2,40,000

=1/5×2,40,000

=Rs. 48,000

The cost of goods sold=2,40,000-48,000

=Rs.1,92,000

Now, we know that the cost of goods sold is also equal to the sum of the opening stock and purchases after deducting the closing stock.

So, the cost of goods sold=Opening stock+purchases-closing stock

Using the given values, we get

1,92,000=Opening stock+1,75,000-30,000

1,92,000-1,45,000=opening stock

Opening stock=Rs.47,000

Therefore, the value of the opening stock is Rs.47,000.