1.

From the following information, ascertain the value of Opening Stock: |{:(,"Rs."),("Purchases","2,20,000"),("Sales","3,60,000"),("Closing Stock"," 40,000"):}||{:(,"Rs."),("Wages","7,000"),("Carriage Outwards","6,000"),("Rate of Gross Profit on Cost of Good sold",50%):}|

Answer»

Solution :
*Gross PROFIT is `50%` on Cost that will be equal to `33(1)/(3)%` on Sales,
Let the Cost of GOODS Sold = Rs. 100, Gross Profit = Rs. 50, Sales = Rs. 100 + Rs. 50 = Rs. 150.
Gross Profit on Cost = Rs. 50/ Rs. 100 or 1/2, Gross Profit on Sales = Rs. 50/ Rs. 150 or 1/3 or `33(1)/(3)%`
It means, Gross Profit `=(1)/(3)` of Sales =`(1)/(3)xx3,60,000=Rs. 1,20,000`.
Nore: Carriage outwards will be debited to Profit and LOSS Account.


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