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Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost?
Most Upvoted Answer
Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Pur...
Valuation of Stock and Calculation of Gross Profit
Value of Stock as on 31.3.2017:
The value of stock as on 31.3.2017 is not given in the question. Hence, it cannot be calculated.
Value of Stock on 1.4.2016:
The value of stock on 1.4.2016 is given in the question and it is 700000.
Purchase during the Period from 1.4.2016 to 31.3.2016:
The purchase during the period from 1.4.2016 to 31.3.2016 is given in the question and it is 3460000.
Manufacturing Expenses during the Above Period:
The manufacturing expenses during the above period are given in the question and it is 700000.
Sales during the Same Period:
The sales during the same period are given in the question and it is 5220000.
Writing off of a Particular Item:
At the time of valuing stock on 31.3.2016, a sum of 60000 was written off a particular item which was originally purchased for 160000.
Calculation of Gross Profit:
The gross profit earned during the year was 25% on cost. Hence, the calculation of gross profit can be done as follows:
- Opening Stock = 700000
- Add: Purchases = 3460000
- Add: Manufacturing Expenses = 700000
- Less: Closing Stock = ?
- Cost of Goods Sold = (Opening Stock + Purchases + Manufacturing Expenses) - Closing Stock
- Cost of Goods Sold = (700000 + 3460000 + 700000) - Closing Stock
- Cost of Goods Sold = 4860000 - Closing Stock
- Gross Profit = 25% of Cost of Goods Sold
- Gross Profit = 0.25 x (4860000 - Closing Stock)
- Gross Profit = 1215000 - 0.25 x Closing Stock
Now, let us calculate the value of Closing Stock.
- Cost of Closing Stock = (Original Cost - Written off Amount)
- Cost of Closing Stock = (160000 - 60000)
- Cost of Closing Stock = 100000
Hence, the value of Closing Stock is 100000.
Substituting the value of Closing Stock in the formula for Gross Profit, we get:
- Gross Profit = 1215000 - 0.25 x 100000
- Gross Profit = 1215000 - 25000
- Gross Profit = 1190000
Hence, the gross profit earned during the year is 1190000.
Conclusion:
- The value of stock as on 31.3.2017 cannot be calculated as it is not given in the question.
- The value of stock on 1.4.2016 is 700000.
- The purchase during the period from 1.4.2016 to 31.3.2016 is 3460000.
- The manufacturing expenses during the above period are 700000.
- The sales during the same period are 5220000.
- At the time of valuing stock on 31.3.2016, a sum of 60000 was written off a particular item which was originally purchased for 160000.
- The gross profit earned during the year was 1190000.
Value of Stock as on 31.3.2017:
The value of stock as on 31.3.2017 is not given in the question. Hence, it cannot be calculated.
Value of Stock on 1.4.2016:
The value of stock on 1.4.2016 is given in the question and it is 700000.
Purchase during the Period from 1.4.2016 to 31.3.2016:
The purchase during the period from 1.4.2016 to 31.3.2016 is given in the question and it is 3460000.
Manufacturing Expenses during the Above Period:
The manufacturing expenses during the above period are given in the question and it is 700000.
Sales during the Same Period:
The sales during the same period are given in the question and it is 5220000.
Writing off of a Particular Item:
At the time of valuing stock on 31.3.2016, a sum of 60000 was written off a particular item which was originally purchased for 160000.
Calculation of Gross Profit:
The gross profit earned during the year was 25% on cost. Hence, the calculation of gross profit can be done as follows:
- Opening Stock = 700000
- Add: Purchases = 3460000
- Add: Manufacturing Expenses = 700000
- Less: Closing Stock = ?
- Cost of Goods Sold = (Opening Stock + Purchases + Manufacturing Expenses) - Closing Stock
- Cost of Goods Sold = (700000 + 3460000 + 700000) - Closing Stock
- Cost of Goods Sold = 4860000 - Closing Stock
- Gross Profit = 25% of Cost of Goods Sold
- Gross Profit = 0.25 x (4860000 - Closing Stock)
- Gross Profit = 1215000 - 0.25 x Closing Stock
Now, let us calculate the value of Closing Stock.
- Cost of Closing Stock = (Original Cost - Written off Amount)
- Cost of Closing Stock = (160000 - 60000)
- Cost of Closing Stock = 100000
Hence, the value of Closing Stock is 100000.
Substituting the value of Closing Stock in the formula for Gross Profit, we get:
- Gross Profit = 1215000 - 0.25 x 100000
- Gross Profit = 1215000 - 25000
- Gross Profit = 1190000
Hence, the gross profit earned during the year is 1190000.
Conclusion:
- The value of stock as on 31.3.2017 cannot be calculated as it is not given in the question.
- The value of stock on 1.4.2016 is 700000.
- The purchase during the period from 1.4.2016 to 31.3.2016 is 3460000.
- The manufacturing expenses during the above period are 700000.
- The sales during the same period are 5220000.
- At the time of valuing stock on 31.3.2016, a sum of 60000 was written off a particular item which was originally purchased for 160000.
- The gross profit earned during the year was 1190000.
Community Answer
Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Pur...
As per my calculation closing stock is 624000. is it correct ??
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Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost?
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Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost?.
Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost?.
Solutions for Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost? in English & in Hindi are available as part of our courses for CA Foundation.
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Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost?, a detailed solution for Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost? has been provided alongside types of Value of stock as on31. 3. 2017 Value of stock on 1.4.2016. 700000 Purchase during the period from 1.4.2016 to 31.3.2016. 3460000 Manufacturing expenses during the above period. 700000 Sales during the same period. 5220000 At the time of valuing stock on 31.3.2016 a sum of 60000 was written off a particular item which was originally purchased for160000 but for the above transaction the gross profit earned during the year was 25% on cost? theory, EduRev gives you an
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