Question

Q.16. From the following information calculate the value of closing stock:
Sales
* 4,15,000
Return outward 8,000
Return inward
* 15,000
Opening stock
* 60,000
Direct expenses * 30,000
Purchase
* 1,78,000
Rate of gross profit 45% on sales.​

Answer 1

Answer:

Closing Stock = Rs 40,000

Explanation:

Given :

Sales = Rs 4,15,000

Return outward = Rs 8,000

Return inward = Rs 15,000

Opening stock = Rs 60,000

Direct expenses = Rs 30,000

Purchase = Rs 1,78,000

Rate of Gross profit 45% on sales

To find :

Calculate the value of Closing Stock

Solution :

Net Sales = Sales - Return Inwards

⇒ 4,15,000 - 15,000

⇒ 4,00,000

Net Sales = Rs 4,00,000

Gross Profit 45 % on Sales

⇒ 4,00,000 × 45 / 100

⇒ 1,80,000

Gross Profit = Rs 1,80,000

Net Sales = Cost of Goods Sold + Gross Profit

⇒ 4,00,000 = Cost of Goods Sold + 1,80,000

⇒ 4,00,000 - 1,80,000 = Cost of Goods Sold

⇒ 2,20,000

Cost of Goods Sold = Rs 2,20,000

Cost of Goods Sold = Opening Stock + (Purchases - Purchase Return) + Direct Expenses - Closing Stock

⇒ 2,20,000 = 60,000 + (1,78,000 - 8,000) + 30,000 - Closing Stock

⇒ 2,20,000 = 60,000 + 1,70,000 + 30,000 - Closing Stock

⇒ 2,20,000 = 2,60,000 - Closing Stock

⇒ Closing Stock = 2,60,000 - 2,20,000

⇒ Closing Stock = 40,000

∴ Closing Stock = Rs 40,000