Question

cash sales 20% of total sales; credit sales ₹450000; gross profit 25% on cost ;opening stock 37500; closing stock 112500​

Answer 1

Explanation:

Solution can be represented as:

Sales= Cost of Goods Sold +Gross Profit

Assuming COGS is Rs.100

Gross Profit will be 1/3 of Rs.100 i.e.33.33

Therefore

Sales =Rs.100+Rs.33.33 i.e. Rs.133.33

If we calculate the Gross Profit on Sales that becomes = GP/Sales*100

=33.33/133.33*100

i.e. Gross Profit will be 25% on sales

Sales= Rs.600000

Gross Profit= 25% of Rs.600000 i.e. Rs.150000

Cost of Goods Sold= Sales-Gross Profit

= Rs.600000-Rs.150000

= Rs.450000

Now, to find out the opening stock, below equation help us:

Cost of Goods Sold= Op Stock+Purchases-Closing Stock

450000=Op Stock+490000-Rs.90000

450000=Op Stock+ Rs.400000

Op Stock = Rs.450000-Rs.400000

Opening Stock =Rs.50000.