Solve please

what is the answer to this?

answer given in book is 15,000

the given profit % is on cost or sales?

closing inventory = 53200*+80000-1000000+14000-30000 = 17200

*profit 33% on cost = 40000+33% on 40000 = 53200

i am getting the answer 15000 but by taking profit at the rate of (100/3)%...

because if we have opening stock 40000 and purchases 80000... this implies that we have goods worth 1,20,000 which we can sell... 

now goods worth Rs. 30,000 were destroyed by fire.. and that leaves us with goods worth Rs. 90,000 to sell...

also.. if the rate of profit on sale is taken to be (100/3)%, then the rate of profit on sales will be 25%...

thus 25% of 1,00,000 is 25000...

we know selling price - profit = cost

so 1,00,000 - 25,000 = 75000..

so closing stock is 90,000 - 75,000.. that is 15,000

you get the answer a lot quicker if you solve it by making trading account.... but just check the rate of profit...

profit ratio u entered is wrong... it should be 33.33% on cost or 25 % on sales

@ piyush thats what i suggested 

@ aksh*ta..  Manish made a mistake in profit ratio.... it should be 33.33% on cost or 25% on sales

ya... i wrote the solution above.. anyways thanks...

@ aksh*ta .... ok urs welcome

Piyush has given the perfect answer in a required form

Answer Will be Rs. 15,000

It goes this way,

        Opening Stock-                            Rs.40,000

Add: Purchases-                                 Rs.80,000

Less: Goods Sold( at Cost)              (Rs.75,000)

(1,00,000-25%)

Less: Goods Destroyed                    (Rs.30,000)

                                                                Rs.15,000

 TRADING A/C

------------------------------------------------------------------------------------------------------------------------

Op. Stock                                                      40000                  Sales                                            100000

Purchase                 80000                                                       Closing Stock (Bal. figure)          15000

Less: Loss by fire   30000                        50000

Gross Profit 100000*33.33/133.33        25000

                                                                    ------------                                                                       -------------

                                                                   115000                                                                          115000