HOTK
P.19. Calculate the value of Opening Stock from the following:
Cash Sales Rs. 40000
Credit Sales Rs. 165000
Sale Return (Out of Credit Sales) Rs. 5000
Purchases Rs. 124000
Purchase Return Rs. 4000
Carriage Inwards Rs. 8000
Closing Stock Rs. 36000
Rate of Gross Profit 40% on Sales.
Answers
Answer:
The value of Opening Stock is Rs 28,000
Explanation:
Cash Sales = Rs. 40,000
Credit Sales = Rs. 1,65,000
Sale Return (Out of Credit Sales) = Rs. 5,000
Purchases = Rs. 1,24,000
Purchase Return = Rs. 4,000
Carriage Inwards = Rs. 8,000
Closing Stock = Rs. 36,000
Rate of Gross Profit = 40% on Sales
Solution :
Calculate the value of Opening Stock :
★ Total Net Sales = (Cash Sales + Credit Sales) - Sales Return
⇒ (40,000 + 1,65,000) - 5,000
⇒ 2,00,000
Net Sales = Rs 2,00,000
★ Gross Profit 40 % on sales :
⇒ 40 % of 2,00,000
⇒ 80,000
Gross Profit = Rs 80,000
- As we know ,
★ Gross Profit = Net Sales - Cost of Goods Sold
⇒ 80,000 = 2,00,000 - Cost of Goods Sold
⇒ Cost of Goods Sold = 2,00,000 - 80,000
⇒ Cost of Goods Sold = 1,20,000
Cost of Goods Sold = Rs 1,20,000
★ Cost of Goods Sold = Opening Stock + (Purchases - Purchase Return) + Carriage Inwards - Closing Stock
⇒ 1,20,000 = Opening Stock + (1,24,000 - 4,000) + 8,000 - 36,000
⇒ 1,20,000 = Opening Stock + 1,20,000 + 8,000 - 36,000
⇒ 1,20,000 = Opening Stock + 92,000
⇒ 1,20,000 - 92,000 = Opening Stock
⇒ 28,000 = Opening Stock
⇒ Opening Stock = Rs 28,000
Therefore,
The value of Opening Stock is Rs 28,000
Explanation:
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