Question

Calculate Closing Stock from the following details:

| Opening Stock | Rs.2,000 | Purchases | Rs.70,000 |
| Cash sales | Rs.60,000 | Credit Sales | Rs.40,000 |

Answer 1

***** Profit on cost = 33 1/3 %.
Cost = 1/3rd

Profit on sales = 1/4th
And, Sales = Cash Sales + Credit Sales = 60,000+40,000 = Rs.1,00,000
So, Profit = 1,00,000 x 1/4 = Rs.25,000
Cost of Goods Sold = Sales – ***** Profit = 1,00,000 – 25,000 = Rs.75,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
75,000 = 20,000 + 70,000 – Closing Stock
Closing Stock = Rs.15,000