Closing stock - urgent

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

 

Replies (18)

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

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.

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.

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.

Ok i check the question agaon

Ok i check the question agaon

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

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.

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

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.

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.

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

 

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.

 

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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