Manohar paid ? 5,00,000 initially towards the purchase of stock of clothes. He then sold
? 3,00,000 of stock for ? 4,00,000 in cash and ? 50,000 of stock on credit for ? 80,000. Out
of the stock sold on credit, goods costing ? 25,000 were returned as being defective. What
will be the amount of closing stock with the firm?
Dear Student
Regards
| stock purchased | 500,000 |
| Less: cost of cash sale | 300,000 |
| Less: cost of credit sale | 50,000 |
| Add: good returned | 25000 |
| Closing Stock | 175000 |
Regards