Question

from the following information find out total sales by preparing memorandum trading account stock in the beginning 8000, purchases 42000, stock at the end 7000, rate of gross profit on sales 1/6 on cost, rerurn outwards 2000​

Answer 1

Answer:

Net purchase = purchase - return outward

= 42000-2000=40000

cost of goods sold = opening stock + net purchase - closing stock

= 8000+40000-7000

=41000

Gross profit = sales - cost

X×1/6 = X -41000

X/6 -X = -41000

X-6X/6=-41000

41000 = 5X/6

41000×6=5X

246000=5X

246000/5=X

X= 49200

sales =49200

Trading account

particular. amt. particular. amt

opening stock 8000. sales. 49200

purchase 42000. closing stock 7000

- return. 2000

40000

gross profit 8200

total. 56200. total. 56200