Calculate value of Opening stock from the following information:
Cash sales Rs.80,000 ,credit sales Rs.3,30,000 ; sales return Rs.10,000 ;purchases Rs.2,48,000 ; purshases return Rs.8,000 ; carriage inwards Rs.16,000 ; closing stock Rs.72,000 ; rate of gross profit is 40% on sales.
Dear Student
We know that ,
Gross profit = (Net Sales + Closing Stock) – (Net Purchases + Opening Stock + Direct Expenses)
Given ,
G.P = 40% on Sales .
Cash Sales = 80,000 Credit Sales = 3,30,000 Sales Return = 10,000
Purchase = 2,48,000 Purchase Return = 8,000 Closing Stock = 72,000 Carriage inward = 16,000
Therefore ,
Net sales = 80,000 + 3,30,000 – 10,000 = 4,00,000 and ,
Thus G.P = 40% of 4,00,000 = 1,60,000
Using the above values in the formula of G.P
1,60,000 = (4,00,000 + 72,000) – (2,40,000 + opening stock + 16,000)
Hence Opening Stock = 56,000
Regards
We know that ,
Gross profit = (Net Sales + Closing Stock) – (Net Purchases + Opening Stock + Direct Expenses)
Given ,
G.P = 40% on Sales .
Cash Sales = 80,000 Credit Sales = 3,30,000 Sales Return = 10,000
Purchase = 2,48,000 Purchase Return = 8,000 Closing Stock = 72,000 Carriage inward = 16,000
Therefore ,
Net sales = 80,000 + 3,30,000 – 10,000 = 4,00,000 and ,
Thus G.P = 40% of 4,00,000 = 1,60,000
Using the above values in the formula of G.P
1,60,000 = (4,00,000 + 72,000) – (2,40,000 + opening stock + 16,000)
Hence Opening Stock = 56,000
Regards