ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

What is closing stock?

Mahesh (Student) (386 Points)

20 May 2012  

goods purchased 100000 sales 90000 margin 20% on sales what is closing stock?


 10 Replies

Piyush Tanwar (Assistant Manager - Accounts)   (1332 Points)
Replied 20 May 2012

closing stock = purchases + margin - sales

therefore, closing stock = 100000 + ( 20% on 90000 ) - 90000 = 100000 + 18000 - 90000 = Rs. 28000

1 Like

Tejaswi Kasturi (student-cpt) (422 Points)
Replied 20 May 2012

sales = 90,000 profit = 20%(sales) = 90,000/5 = 18,000 so cost of goods sold is 72,000 total purchases 1,00,000 so closing stock is 1,00,000 - 72,000 = 28,000

1 Like

Sumit Kansal (Chartered Accountant) (40 Points)
Replied 21 May 2012

Hi  mahesh the correct answer to this problem is Rs 28000 as posted by Piyush

It is really delightful that a student answered this simple  ques correctly and a CA (Tejas) entered wrong post!!!!

Tejas plz note that profit is 20% of sales AND NOT ON COST.

So if i assume cost to be 100 then profit margin is 25% on cost and/or 20% on sales.

Therefore, if cost 100 sales will be 125 and not 120.

90000*100/125=72000

cl stock=100000-72000= 28000

2 Like

Tejas Jain (Chartered Accountant) (309 Points)
Replied 21 May 2012

It was my mistake the answer posted by Piyush and CA Sumit Kansal is correct. This is the reason why I have removed my post.

1 Like

Sonu Kumar (Account Manager) (661 Points)
Replied 21 May 2012

Closing Stock Will be 28000

1 Like

ayushi (student) (49 Points)
Replied 21 May 2012

cost of goods sold = Sales - gross profit = 90000 - 20% on 90000 = 90000 - 18000 = 72000

Hence, closing stock = 100000 - 72000 = 28000 

2 Like

Prakash (Chartered Accountant) (560 Points)
Replied 21 May 2012

Here is the formula to solve those sort of questions

 

Opening Stock (At Cost)+ Purchases (Obviously At Cost) - Cost of Goods Sold (Sales) = Closing Stock (At Cost) 

 

You can play with above to get whatever missing figure you need and train your mind to get the figures at Cost

 

1 Like

Mahesh (Student) (386 Points)
Replied 22 May 2012

thank u frnds...smiley

Shiv Thorat (2 Points)
Replied 02 September 2017

Bt in cpt module the answer is 25k. ???

Natarajan (AM) (35 Points)
Replied 07 April 2019

90,000 is sales so 90,000/120 x 100 = 75,000 is cost of goods sold .

1,00,000 - 75,000 = 25000 is the actual stock in hand


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  





Subscribe to the latest topics :
Search Forum:

Trending Tags