Use the following information to answer the next question.Purchases Rs 80,000, Opening Stock Rs 30,000, Cash Sales Rs 75,000 and Credit Sales Rs 45,000
Calculate the closing stock if the rate of gross profit on cost is3313%.
this question is given in study material of meritnation but i am not ubderstanding that.please explain me deeply.
Cost of goods sold = Net sales-Gross profit So Cost of Goods sold =1,20,000-30,000 = 90,000(Cost of goods sold)
Cost of Good sold=Opening stock+Net purchase- closing stock (put the value in this formula)
90000 = 30000 + 80000 - closing stock
closing stock = 30000 +80,000 -90,000
closing stock = 20,000