Question

Question 5(A) Calculate Closing Stock and Cost of Goods Sold: Opening Stock * 5,000; Sales * 16,000; Carriage Inwards * 1,000; Sales Returns 1,000; Gross Profit * 6,000; Purchase 10,000; Purchase Retums 900​

Answer 1

Answer:

Solution

Cost of Goods Sold

= Net Sales (Sales - Sales Return) - Gross Profit

= Rs. 15,000 - Rs. 6,000

= Rs. 9,000.

Closing Stock

= Opening Stock + Net Purchaases (Purchases - Purchases Return) + Carriage Inwards - Cost of Goods Sold

= Rs. 5,000 + Rs. 9,100 + Rs. 1,000 - Rs. 9,000

= Rs. 6,100

Answer 2

Explanation:

Opening Stock = 5,000,

Sales = 16,000

Carriage Inwards = 1,000,

Sales Returns= 1,000,

Gross Profit = 6,000

Purchase = 10,000,

Purchase Returns = 900

Closing Stock = ??

Cost of Goods Sold = ??

Solution :

★ Cost of Goods Sold :

Net Sales = Sales - Sales Return

= 16,000 - 1,000

= 15,000

Net Sales = 15,000

Cost of Goods Sold = Net Sales - Gross Profit

= 15,000 - 6,000

= 9,000

Cost of Goods Sold = 9,000

★ Closing Stock :

Cost of Goods Sold = Opening Stock + (Purchase - Purchase Return) + Carriage Inwards - Closing Stock

9,000 = 5,000 + (10,000 - 900) + 1,000 - Closing Stock

9,000 = 5,000 + 9,100 + 1,000 -

Closing Stock

9,000 = 15,100 - Closing Stock

Closing Stock = 15,100 - 9,000

Closing Stock = 6,100

Therefore,

• Closing Stock = 6,100
• Cost of Goods Sold = 9,000