Question

cash sales 1.5 times of credit sales 120000.purchase is 140000 gross profit 25%on cost .find closing stock

Answer 1

closing stock = 100000

Explanation:

Credit Sales = 120000

Cash Sale   = 1.5 x 120000

                    = 180000

Total Sale = cash sale + Credit sale

                 = 120000 + 180000

                 = 300000

Gross profit on cost = 25% = $\frac{1}{4}$

Gross profit on sale = $\frac{1}{4+1}$= $\frac{1}{5}$

Gross Profit = 300000 x $\frac{1}{5}$

                    =   60000

Cost of goods sold = Sales - Gross Profit

                                 =  300000 - 60000

                                  = 240000

Cost of Goods sold = Opening stock + Purchases + Direct expense - Closing stock

2400000= 140000 - Closing Stock

Closing Stock = 240000 - 140000

                       = 100000

It is assumed company is new there is no opening stock and Direct expense

#learn more

https://brainly.in/question/14769553