calculate opening inventory from flowing ; 1]closing inventory -68000
2]total sales-480000[including cash sales 120000]
3]total purchase-360000[including credit purchase 239200]
goods are sold at a profit of 25% on cost.
Sales = Cost of Goods Sold+Gross Profit
Rs 4,80,000 = Cost of Goods Sold+Gross Profit
Let Cost of Goods sold = x
Gross Profit = 25x/100
Rs 4,80,000 = x+25x/100
Cost of Goods Sold = Rs 3,84,000
Gross Profi = Rs 96,000 (Rs 3,84,000*25/100)
Opening Stock = Sales+Closing Stock-Purchaes-Gross Profit
Rs 4,80,000+Rs 68,000-Rs 3,60,000-Rs 96,000 = Rs 92,000.
Rs 4,80,000 = Cost of Goods Sold+Gross Profit
Let Cost of Goods sold = x
Gross Profit = 25x/100
Rs 4,80,000 = x+25x/100
Cost of Goods Sold = Rs 3,84,000
Gross Profi = Rs 96,000 (Rs 3,84,000*25/100)
Opening Stock = Sales+Closing Stock-Purchaes-Gross Profit
Rs 4,80,000+Rs 68,000-Rs 3,60,000-Rs 96,000 = Rs 92,000.