Question

goods purchased 100000,sales 90000,margin is 20% on cost what is closing inventory

Answer 1

the closing inventary is 25000
why because 90000×1\6=15000
90000-15000=75000=sales
100000-75000=25000=closing inventory

Answer 2

The closing Inventory is 25,000

Given:  

Purchase price = 1,00,000

Sales = 90000 (Including profit of 20% on cost)

Solution:

Cost of goods sold = Sales - (Sale price % - Profit on sale %)

$\text {Cost of goods sold} = 90,000 - \left (90,000 \times \frac{1}{6} \right) = 75000$

Therefore, Closing inventory = Purchase - Cost of goods sold

Thus, we get,

Closing Inventory = 1,00,000 - 75000 = 25,000

Profit on sale % = 20% profit on cost = 25% profit on sale