Question
Download Solution PDFThe amount of closing stock would be, when
Sales - Rs. 6,00,000
Opening Stock - Rs. 50,000
Purchases - Rs. 5,00,000
Productive Wages - Rs. 10,000
Carriage Inwards - Rs. 7,000
Rate of Gross Profit on cost - 20%
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Rs. 67000.
Key Points
Cost of Sales = Sales - Gross Profit
Since the Rate of Gross Profit on cost is 20%, the Sales are 120% of the Cost of Sales.
Therefore, Cost of Sales = Sales / 120% = Rs. 6,00,000 / 1.2 = Rs. 5,00,000.
Then, we calculate the amount of closing stock:
Cost of Goods Sold (COGS) = Opening Stock + Purchases + Productive Wages + Carriage Inwards - Closing Stock
Solving for Closing Stock, we have:
Closing Stock = Opening Stock + Purchases + Productive Wages + Carriage Inwards - COGS
Substituting the known values, we get:
Closing Stock = Rs. 50,000 (Opening Stock) + Rs. 5,00,000 (Purchases) + Rs. 10,000 (Productive Wages) + Rs. 7,000 (Carriage Inwards) - Rs. 5,00,000 (COGS)
Closing Stock = Rs. 67,000.
So, the correct answer is: 2) Rs. 67,000
Last updated on May 25, 2025
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