Question 24.
Calculate the value of CLosing Stock from the following information:
Purchases – ₹ 93,000
Wages – ₹ 20,000
Sales – ₹ 1,20,000
Carriage Outwards – ₹ 3,200
Opening Stock – ₹ 16,000
Rate of Gross Profit 25% on Cost
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The closing stock amounts to Rs 33,000
Explanation:
The closing stock is computed by preparing the trading account as:
Trading Account
Dr Side
Opening Stock A/c Rs 16,000
Purchases A/c Rs 93,000
Wages A/c Rs 20,000
Gross Profit c/d Rs 24,000
Total Rs153,000
Cr Side
Sales A/c Rs 120,000
Closing Stock A/c Rs 93,000
Total Rs153,000
Working Note:
Gross profit is computed as:
Gross profit = Sales × 20%
= Rs 120,000 × 20%
= Rs 24,000
NOTE: Carriage outwards will not considered here as it is recorded in profit and loss account.
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