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Find out value of Closing Stock :
Opening Stock Rs. 70,000
Purchase Rs. 4,16,000
Sales Rs. 5,22,000
Gross profit earned 25% of cost
Opening Stock Rs. 70,000
Purchase Rs. 4,16,000
Sales Rs. 5,22,000
Gross profit earned 25% of cost
- a)Rs. 68,400
- b)Rs. 36,000
- c)Rs. 94,500
- d)None
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. ...
Accounting Equation to find out the cost of goods sold is :
Cost of Goods sold = Opening stock + Purchases - Closing Stock
Gross Profit earned is 25% on cost.
Let us assume cost is Rs.100
GP will @25% on cost i.e. Rs.25
Hence sales becomes cost of goods sold + Profit i.e. Rs.100 + Rs.25= Rs.125
Therefore Gross Profit on sales will be = Gross Profit / Sales * 100
Profit on sales = Rs.25 / Rs.125 * 100 i.e 20% on Sales
In the given problem Sales is Rs. 522000
Hence Gross Profit will be 20% of Rs.522000 i.e. Rs.104400
Cost of Goods Sold = Rs.522000 - Rs.104400
Cost of goods sold = Rs.417600
Therefore
Rs.417600 = Rs.70000 + Rs.416000 - Closing stock
Closing stock = Rs.486000 - Rs.417600
Closing Stock = Rs.68400
Most Upvoted Answer
Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. ...
To find out the value of closing stock, we need to use the formula:
Closing Stock = Opening Stock + Purchases - Sales
Using the given values, we get:
Closing Stock = 70,000 + 4,16,000 - 5,22,000
Closing Stock = 64,000
Now, to calculate the gross profit earned, we need to use the formula:
Gross Profit = Sales - Cost of Goods Sold
We can calculate the cost of goods sold using the formula:
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
Using the given values, we get:
Cost of Goods Sold = 70,000 + 4,16,000 - 64,000
Cost of Goods Sold = 4,22,000
Now, using the formula for gross profit, we get:
Gross Profit = 5,22,000 - 4,22,000
Gross Profit = 1,00,000
As given in the question, the gross profit earned is 25% of cost. So, we can use the formula:
Gross Profit = 25% of Cost
Substituting the value of gross profit, we get:
1,00,000 = 25% of Cost
Cost = 4,00,000
Now, to calculate the value of closing stock at the end of the period, we can use the formula:
Closing Stock = Cost - (Opening Stock + Purchases - Sales)
Substituting the given values, we get:
Closing Stock = 4,00,000 - (70,000 + 4,16,000 - 5,22,000)
Closing Stock = Rs. 68,400
Therefore, the correct answer is option 'A' - Rs. 68,400.
Closing Stock = Opening Stock + Purchases - Sales
Using the given values, we get:
Closing Stock = 70,000 + 4,16,000 - 5,22,000
Closing Stock = 64,000
Now, to calculate the gross profit earned, we need to use the formula:
Gross Profit = Sales - Cost of Goods Sold
We can calculate the cost of goods sold using the formula:
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
Using the given values, we get:
Cost of Goods Sold = 70,000 + 4,16,000 - 64,000
Cost of Goods Sold = 4,22,000
Now, using the formula for gross profit, we get:
Gross Profit = 5,22,000 - 4,22,000
Gross Profit = 1,00,000
As given in the question, the gross profit earned is 25% of cost. So, we can use the formula:
Gross Profit = 25% of Cost
Substituting the value of gross profit, we get:
1,00,000 = 25% of Cost
Cost = 4,00,000
Now, to calculate the value of closing stock at the end of the period, we can use the formula:
Closing Stock = Cost - (Opening Stock + Purchases - Sales)
Substituting the given values, we get:
Closing Stock = 4,00,000 - (70,000 + 4,16,000 - 5,22,000)
Closing Stock = Rs. 68,400
Therefore, the correct answer is option 'A' - Rs. 68,400.
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Community Answer
Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. ...
Gross profit = 25%on cost =20%on sales
Gross profit = 522000 × 20%
=104400
Cost of goods sold = Sales - gross profit
= 522000 - 104400
= 417600
Again, CGS = Opening stock + purchase -Closing stock .
417600 = 70000+ 416000 - closing stock
417600= 486000 - closing stock
Closing stock = 486000- 417600 = 68400.
Gross profit = 522000 × 20%
=104400
Cost of goods sold = Sales - gross profit
= 522000 - 104400
= 417600
Again, CGS = Opening stock + purchase -Closing stock .
417600 = 70000+ 416000 - closing stock
417600= 486000 - closing stock
Closing stock = 486000- 417600 = 68400.
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Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. 4,16,000Sales Rs. 5,22,000Gross profit earned 25% of costa)Rs. 68,400b)Rs. 36,000c)Rs. 94,500d)NoneCorrect answer is option 'A'. Can you explain this answer?
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Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. 4,16,000Sales Rs. 5,22,000Gross profit earned 25% of costa)Rs. 68,400b)Rs. 36,000c)Rs. 94,500d)NoneCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. 4,16,000Sales Rs. 5,22,000Gross profit earned 25% of costa)Rs. 68,400b)Rs. 36,000c)Rs. 94,500d)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. 4,16,000Sales Rs. 5,22,000Gross profit earned 25% of costa)Rs. 68,400b)Rs. 36,000c)Rs. 94,500d)NoneCorrect answer is option 'A'. Can you explain this answer?.
Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. 4,16,000Sales Rs. 5,22,000Gross profit earned 25% of costa)Rs. 68,400b)Rs. 36,000c)Rs. 94,500d)NoneCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. 4,16,000Sales Rs. 5,22,000Gross profit earned 25% of costa)Rs. 68,400b)Rs. 36,000c)Rs. 94,500d)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find out value of Closing Stock :Opening Stock Rs. 70,000Purchase Rs. 4,16,000Sales Rs. 5,22,000Gross profit earned 25% of costa)Rs. 68,400b)Rs. 36,000c)Rs. 94,500d)NoneCorrect answer is option 'A'. Can you explain this answer?.
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