ICICI

exess of closing stock over opening stock........????


harish .k (STUDING)     03 November 2010

harish .k
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Hi to every one..

i have a query regarding , while going through single entry system , in a problem they given EXCESS OF CLOSING STOCK OVER OPEING STOCK IS  Rs 5000/-

Whatis the meaning of it ???

is it to take closing stock value as 10000/- and opening stock valueas 5000/- is it correct or wrong plz reply....

Thanks in advance

HARISH

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Simranjeet Singh (ACS)     03 November 2010

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Yes u r right bro................... it says that if opening stock is N then closing stock will be N + 5000...

 

but how u take that 10,000. is it's given in problem or u r assuming this fig ???

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sudhakar ca cwa (service)     03 November 2010

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YA You are right,

If closing stock value is 10.000 then opening stock value is Rs.5000.

if u dnt have the opening or clsoing stock value then Take this Rs.5000/- as clsoing stock to slove ur problem

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Azim Khan ACA,CS,CMA*,LLB* (Proprietor)     03 November 2010

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it means if opening stock is "x" then the closing stock will be " x+5000"

if you take opening stock as Nil, the closing stock will be Rs.5000.

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harish .k (STUDING)     03 November 2010

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 thanks for replying ...

i assumed  it as 10000/- closing stock because problem  given  as excess of closing stock over opening stock is 5000/-

the problem is find  out the purchase from from details during calender Yr 2006

openig debtors 17000

closing debtors 28000

collectons  212000

excess of closing stock over opening stock  is 5000

GP RATIO 25%

FIND PURCHASES?

Rohit (Student)     03 November 2010

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For the first one bro u r partly correct coz u cannot assume cl stock to be 10000 it can b any amount but the difference betwn cl stock and op stock must come 5000..

 

Ur Second solution..

First of all we will make debtors a/c to find out our sales figure..since no info regardng cash sales is given so we will assume the credit sales to b only sales made during the year..

So ur credit sales will come to  Collections+cl debtors-op debtors..

wich comes to 212000+28000-17000=223000.

Then we can find out the GP wich 25% on sales..

wich comes to 223000*25%=55750.

And our COGS will be 223000-55750=167250

Now, As we knw that  COGS=Op stock+Purchases-Cl stock

So, we can write COGS+Cl stock-Op stock=Purchases

We have COGS=167250 and Cl stock-Op stock=5000

So our Purchases will be = 167250+5000=172250

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harish .k (STUDING)     03 November 2010

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Thanks for replying ROHIT,

i to got the same value purchases as 172250/-

just i wanna to conform what  is the procedure and  is it correct or wrong 

parminder (student)     03 November 2010

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IT MEANS THAT OPENING STOCK IS 'X' AND CLOSING STOCK IS 'X+5000'.IF THE AMOUNT OF OPENING STOCK IS NOT GIVEN IN THE QUESTION HOW CAN U TAKE IT AS 5000.

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harish .k (STUDING)     03 November 2010

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it is difference between COGS & CLOSING STOCK

Rohit (Student)     03 November 2010

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so did u did it in the same way??


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