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Closing stock - urgent

Hemchand Kohli (Accountant) (888 Points)

12 June 2012  

please solve the following question:

 

 Cost of Goods Sold Rs. 100,000.00

Sale Rs. 80,000.00

OPening Stock Rs. 20,000.00

Gross Profit Margin 20% & 

what will be closing stock

 


 18 Replies

ashish gupta ( student) (1917 Points)
Replied 12 June 2012

If Gross profit is 20 % then how cost of goods sold can be higher than sales.

frank (owner) (131 Points)
Replied 12 June 2012

COGS cannot be higher than the sales unless the goods are sold for a loss. Ashish is right. Hemchand please check whether the goods are sold below the cost price.

frank (owner) (131 Points)
Replied 12 June 2012

COGS cannot be higher than the sales unless the goods are sold for a loss. Ashish is right. Hemchand please check whether the goods are sold below the cost price.

frank (owner) (131 Points)
Replied 12 June 2012

COGS cannot be higher than the sales unless the goods are sold for a loss. Ashish is right. Hemchand please check whether the goods are sold below the cost price.

Hemchand Kohli (Accountant) (888 Points)
Replied 12 June 2012

Ok i check the question agaon

Hemchand Kohli (Accountant) (888 Points)
Replied 12 June 2012

Ok i check the question agaon

BHARAT BAMBHAROLIYA (CA FINAL) (57 Points)
Replied 12 June 2012

Please place the correct question .................

MOHD ANZAR ALI (EMPLOYEE) (78 Points)
Replied 12 June 2012

since COGS = 100000

WHERE SALE = COGS+ PROFIT

THEN TOTAL SALE AVAILABLE =100000+25000

HENCE AVAILABE FOR SALE = 125000

ACTUAL SALE 80000

THEN CLOSING STOCK = 125000-80000 = 45000

take 20% on sale are equal 25% on cost.

Hemchand Kohli (Accountant) (888 Points)
Replied 12 June 2012

Ya but in Books this was the question, and i think question is wrong and what will be closing stock if there is Gross Loss 20% instead of GP

MOHD ANZAR ALI (EMPLOYEE) (78 Points)
Replied 12 June 2012

since COGS = 100000

WHERE SALE = COGS+ PROFIT

THEN TOTAL SALE AVAILABLE =100000+25000

HENCE AVAILABE FOR SALE = 125000

ACTUAL SALE 80000

THEN CLOSING STOCK = 125000-80000 = 45000

take 20% on sale are equal 25% on cost.

MOHD ANZAR ALI (EMPLOYEE) (78 Points)
Replied 12 June 2012

since COGS = 100000

WHERE SALE = COGS+ PROFIT

THEN TOTAL SALE AVAILABLE =100000+25000

HENCE AVAILABE FOR SALE = 125000

ACTUAL SALE 80000

THEN CLOSING STOCK = 125000-80000 = 45000

 

further it may treat closing stock on cost value

45000-9000 = 36000

take 20% on sale are equal 25% on cost.

CA. Amit Prajapati (Chartered Accountant) (118 Points)
Replied 12 June 2012

But COGS = Opg Stock + Production or Purchased Stock - Clsg Stock ?

MOHD ANZAR ALI (EMPLOYEE) (78 Points)
Replied 12 June 2012

 

since COGS = 100000

WHERE SALE = COGS+ PROFIT

THEN TOTAL SALE AVAILABLE =100000+25000

HENCE AVAILABE FOR SALE = 125000

ACTUAL SALE 80000

THEN CLOSING STOCK = 125000-80000 = 45000

 

if question specially define only on cost then further it may treat closing stock on cost value

45000-9000 = 36000

take 20% on sale are equal 25% on cost.

MOHD ANZAR ALI (EMPLOYEE) (78 Points)
Replied 12 June 2012

 

since COGS = 100000

WHERE SALE = COGS+ PROFIT

THEN TOTAL SALE AVAILABLE =100000+25000

HENCE AVAILABE FOR SALE = 125000

ACTUAL SALE 80000

THEN CLOSING STOCK = 125000-80000 = 45000

 

if question specially define only on cost then further it may treat closing stock on cost value

45000-9000 = 36000

take 20% on sale are equal 25% on cost.


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