Question

GOODS PURCHASED R.S 100000 , SALES R.S. 90000 MARGIN 20% ON COST
WHAT IS THE CLOSING INVENTORY?

Answer 1

purchase 100000
to sales. 100000

Answer 2

Closing stock = 25,000

Explanation:

Given:

Purchase = 100,000

Sales = 90,000

Gross margin = 20% on cost

Computation:

Sales = Cost of goods sold + Gross margin

Sales = Cost of goods sold + 20% of Cost of goods sold

90,000 = Cost of goods sold + 0.20 Cost of goods sold

90,000 = 1.2 Cost of goods sold

Cost of goods sold =75,000

Cost of goods sold = Opening Stock + Purchase - Closing stock

75,000 = 0 + 100,000 - Closing stock

Closing stock = 100,000 - 75,000

Closing stock = 25,000

Learn more:

https://brainly.in/question/1729140

#learnwithbrainly