Question

opening stock is rs245000,purchases rs1500000,sales rs1740000,find closing stock when ,GP is 20% on cost​

Answer 1

Answer:

So Assuming cost is 100 & Thus SP = 120(Cost+GP).

As GPR on Sales = GP/Sales *100. It gives us 20/120*100 = 16.666666% approx.

The above solution gives us 20% on Cost of Goods Sold = 16.666666% of Sales (approx.)

As Sales are all the goods sold and their Sale Price is !7,40,000, We can find the cost of Goods sold by Sales - GP = 17,40,000 - (16.67% of 17,40,000) = 14,50,000.

Thus Closing Stock = Op. Stock + Purchase - Closing = 2,45,000 + 15,00,000 – 14,50,000 = 2,95,000.

I hope u get this.

Alternatively COGS could be found using (Sales/120*100) which is sales includes cost + GP thus above equation will remove the GP portion.