Question

Q. 12. Cash purchases Rs. 60,000. Credit Sales Rs. 3,62,000, Cash Sales Rø. 80,000,
Closing Stock Is Rs. 30,000, Opening Stock is Rs. 50,000, Rate of gross profit
on cost is 20%, then credit purchases are:-
a) 2,54,499
b) 2,80,000
c) 3,52,000
d) 2,65,800​

Answer 1

Answer:

280000

Explanation:

GP IS 20% i.e. 1/5th on cost

so, GP on sales will be 1/6

Now,

COGS= Cash Sales + Credit Sales- GP

         = 80000+ 362000- ($\frac{80000+362000}{6}$)

         = 432000-72000

         = 360000

Now, COGS= Opening stock + Cash purchases + credit purchases- closing stock

360000= 50000+60000+ credit purchases- 30000

credit purchases= 360000-50000-60000+30000

credit purchases= 280000

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