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From the following particulars for the year 2014 and 2015 determine the value of the closing stock at the end of 2015 2014. 2015 Opening stock 20,000. 30,000 Purchase. 1,20,000. 1,90,000 Sales. 2,00,000. 2,40,000 Uniform rate of gross profit may be assumed. At the end of 2015,gross purchased were received,but no entry was made for this credit purchase since invoice was not received.these goods cost rs.20,000?
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From the following particulars for the year 2014 and 2015 determine th...
Calculation of Closing Stock:
Opening Stock (2015) = 20,000
Purchases (2015) = 1,90,000
Total Available Stock = 2,10,000
Sales (2015) = 2,40,000
Calculation of Gross Profit:
Gross Profit = Sales - Cost of Goods Sold
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
Assuming uniform rate of gross profit:
Gross Profit (2014) = Gross Profit (2015)
Gross Profit (2014) = 2,00,000 - Cost of Goods Sold (2014)
Gross Profit (2015) = 2,40,000 - Cost of Goods Sold (2015)
Therefore,
2,00,000 - (20,000 + 1,20,000 - Closing Stock 2014) = 2,40,000 - (20,000 + 1,90,000 - Closing Stock 2015)
Closing Stock 2015 = 30,000
Closing Stock 2014 = 10,000
Explanation of Credit Purchase:
The credit purchase of Rs.20,000 received at the end of 2015 was not recorded in the books because the invoice was not received. This is a violation of the accounting principle of completeness, which requires all transactions to be recorded in the books regardless of whether an invoice has been received or not. The correct treatment of this credit purchase would be to record it as an accounts payable and adjust the cost of goods sold and closing stock accordingly. Failure to record this transaction could result in an understatement of expenses and an overstatement of profits.
Opening Stock (2015) = 20,000
Purchases (2015) = 1,90,000
Total Available Stock = 2,10,000
Sales (2015) = 2,40,000
Calculation of Gross Profit:
Gross Profit = Sales - Cost of Goods Sold
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
Assuming uniform rate of gross profit:
Gross Profit (2014) = Gross Profit (2015)
Gross Profit (2014) = 2,00,000 - Cost of Goods Sold (2014)
Gross Profit (2015) = 2,40,000 - Cost of Goods Sold (2015)
Therefore,
2,00,000 - (20,000 + 1,20,000 - Closing Stock 2014) = 2,40,000 - (20,000 + 1,90,000 - Closing Stock 2015)
Closing Stock 2015 = 30,000
Closing Stock 2014 = 10,000
Explanation of Credit Purchase:
The credit purchase of Rs.20,000 received at the end of 2015 was not recorded in the books because the invoice was not received. This is a violation of the accounting principle of completeness, which requires all transactions to be recorded in the books regardless of whether an invoice has been received or not. The correct treatment of this credit purchase would be to record it as an accounts payable and adjust the cost of goods sold and closing stock accordingly. Failure to record this transaction could result in an understatement of expenses and an overstatement of profits.
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From the following particulars for the year 2014 and 2015 determine the value of the closing stock at the end of 2015 2014. 2015 Opening stock 20,000. 30,000 Purchase. 1,20,000. 1,90,000 Sales. 2,00,000. 2,40,000 Uniform rate of gross profit may be assumed. At the end of 2015,gross purchased were received,but no entry was made for this credit purchase since invoice was not received.these goods cost rs.20,000?
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From the following particulars for the year 2014 and 2015 determine the value of the closing stock at the end of 2015 2014. 2015 Opening stock 20,000. 30,000 Purchase. 1,20,000. 1,90,000 Sales. 2,00,000. 2,40,000 Uniform rate of gross profit may be assumed. At the end of 2015,gross purchased were received,but no entry was made for this credit purchase since invoice was not received.these goods cost rs.20,000? 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 From the following particulars for the year 2014 and 2015 determine the value of the closing stock at the end of 2015 2014. 2015 Opening stock 20,000. 30,000 Purchase. 1,20,000. 1,90,000 Sales. 2,00,000. 2,40,000 Uniform rate of gross profit may be assumed. At the end of 2015,gross purchased were received,but no entry was made for this credit purchase since invoice was not received.these goods cost rs.20,000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following particulars for the year 2014 and 2015 determine the value of the closing stock at the end of 2015 2014. 2015 Opening stock 20,000. 30,000 Purchase. 1,20,000. 1,90,000 Sales. 2,00,000. 2,40,000 Uniform rate of gross profit may be assumed. At the end of 2015,gross purchased were received,but no entry was made for this credit purchase since invoice was not received.these goods cost rs.20,000?.
From the following particulars for the year 2014 and 2015 determine the value of the closing stock at the end of 2015 2014. 2015 Opening stock 20,000. 30,000 Purchase. 1,20,000. 1,90,000 Sales. 2,00,000. 2,40,000 Uniform rate of gross profit may be assumed. At the end of 2015,gross purchased were received,but no entry was made for this credit purchase since invoice was not received.these goods cost rs.20,000? 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 From the following particulars for the year 2014 and 2015 determine the value of the closing stock at the end of 2015 2014. 2015 Opening stock 20,000. 30,000 Purchase. 1,20,000. 1,90,000 Sales. 2,00,000. 2,40,000 Uniform rate of gross profit may be assumed. At the end of 2015,gross purchased were received,but no entry was made for this credit purchase since invoice was not received.these goods cost rs.20,000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following particulars for the year 2014 and 2015 determine the value of the closing stock at the end of 2015 2014. 2015 Opening stock 20,000. 30,000 Purchase. 1,20,000. 1,90,000 Sales. 2,00,000. 2,40,000 Uniform rate of gross profit may be assumed. At the end of 2015,gross purchased were received,but no entry was made for this credit purchase since invoice was not received.these goods cost rs.20,000?.
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