Question

The Sales `180 Lakh, Purchases `129 Lakh and Opening Stock ` 33 Lakh. If the rate of
Gross Profit is 50% on cost, then the value of closing stock will be

Answer 1

Answer:

as cost is not given assume it X

cost = sale - gross profit

X = 18000000 - X×50%

X = 18000000- X/2

X+X/2 = 18000000

3X/2 =18000000

3X = 36000000

X = 12000000

cost = 120 lakh

cost = opening stock + purchase - closing stock

120lakh = 33lakh + 129lakh - closing stock

120 lakh = 142 lakh - closing stock

closing stock = 22 lakh