Question

Determine "Stock on date of fire"
from following details: Opening Stock
- Rs. 40.000; Purchases - Rs.
2.10,000: Sales - 3,00,000 & Wages -
Rs. 60,000. Gross profit margin for
previous year was 50% on cost.​

Answer 1

Answer:

Stock on the date of fire = Rs. 1,60,000

Explanation:

Step : 1 Calculation of Closing stock:-

Closing stock = Opening stock + Purchases+ wages+Gross profit - sales

= 40,000 + 2,10,000+ 60,000+1,50,000+-300000

= 4,60,000- 3,00,000

= Rs. 1,60,000

Step : 2 Calculation of Gross profit :-

Gross profit = 3,00,000 x 50/100

=Rs. 1,50,000