Saved Bookmarks
| 1. |
From the following information, ascertain the value of Closing Stock: {:("Particulars"," Rs."),("Stock in the beginning.............................................","10,000"),("Cash Sales.............................................","30,000"),("Credit Sales..............................................","20,000"),("Purchases..............................................","35,000"),("Indirect Expenses..............................................","7,000"),("Rate of Gross Profit on Cost........................................","1/3"):} |
Answer» Solution : Note 1. Gross Profit is 1/3rd of Cost = 1/4th of Sales Let Cost = RS. 100, Gross Profit = Rs. `33(1)/(3)`, Sale = Rs. `133(1)/(3)` or `(Rs.400)/(3)` `"Gross Profit on Sales"=("Rs.100/3")/("Rs.400/3")or(100)/(3)xx(3)/(400)=(1)/(4)` `THEREFORE"Gross Profit"=(1)/(4)" of Sales"=(1)/(4)xx"Rs. 50,000 = Rs. 12,500"` 2. Closing Stock will be the Balancing Figure. 3. Indirect expenses are not CONSIDERED for this purpose as these expenses are taken to Profit and LOSS Account. |
|