Question

How to calculate closing stock from trial balance when gross profit is not given ?
Please answer ASAP

Answer 1

Answer:

Gross Profit method is also used to estimate the amount of closing stock.

Step 1 – Add the cost of beginning inventory and the cost of purchases we will arrive at the cost of goods available for sale.

Step 2 – Multiply (1 – expected gross profit) with sales to arrive at the cost of goods sold