Question

The value of opening stock is ₹.25,000; Purchases ₹.1,75,000; Return outward ₹.1,00,000; Closing stock ₹. 36,000. Find out the cost of goods sold.

Answer 1

ANSWER :

• ❖ If the value of Opening Stock is Rs. 25,000; Purchases is Rs. 1,75,000; Return Outward is Rs. 1,00,000 and Closing Stock is Rs. 36,000; then the Cost of Goods Sold is Rs. 64,000.

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SOLUTION :

❒ Given :-

• Opening Stock = Rs. 25,000

• Purchases = Rs. 1,75,000

• Return Outward = Rs. 1,00,000

• Closing Stock = Rs. 36,000

❒ To Find :-

• Cost of Goods Sold = ?

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❒ Required Formulas :-

• ★ Cost of Goods Sold = Opening Stock + Net Purchases - Closing Stock

• ★ Net Purchases = Purchases - Return Outward

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❒ Calculation :-

Using the formula of Net Purchases,

• ★ Net Purchases = Purchases - Return Outward

➜ Net Purchases = Rs. 1,75,000 - Rs. 1,00,000

➜ Net Purchases = Rs. 75,000

Now,

• Opening Stock = Rs. 25,000

• Net Purchases = Rs. 75,000

• Closing Stock = Rs. 36,000

Using the formula of Cost of Goods Sold,

• ★ Cost of Goods Sold = Opening Stock + Net Purchases - Closing Stock

➨ Cost of Goods Sold = Rs. 25,000 + Rs. 75,000 - Rs. 36,000

➨ Cost of Goods Sold = Rs. 1,00,000 - Rs. 36,000

∴ Cost of Goods Sold = Rs. 64,000 ✪

• ✎ Hence, the Cost of Goods Sold is Rs. 64,000.