Question

Opening Stock 480000
Purchase 1360000
Sales 1950000
Gross profit 30% on cost
Calculate Closing Stock from these details...

Answer 1

Closing stock will be = 1840000 - 1625007.15 = 214992.25

Step-by-step explanation:

Given,

Opening Stock =  480000

Purchase = 1360000

Sales =  1950000

According to the questions,

Op. stock + purchase = 480000 + 1360000 = 1840000

Gross profit is 20% on cost = $\frac{20}{120} = 16.666 \%$

So, cost will be 100 - 16.667 = 83.3334%

Sales is = 1950000

Cost of sales = $1950000\times \frac{83.33337}{100}$

= 1625007.15

Gross profit will be = 1950000 - 1625007.15 = 324992.25

Closing stock will be = 1840000 - 1625007.15 = 214992.25