goods purchased 100000 sales 90000 margin 20% on sales what is closing stock?
10 Replies
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 20 May 2012
closing stock = purchases + margin - sales
therefore, closing stock = 100000 + ( 20% on 90000 ) - 90000 = 100000 + 18000 - 90000 = Rs. 28000
Tejaswi Kasturi
(student-cpt)
(427 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
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
Tejas Jain
(Chartered Accountant)
(314 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.
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
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
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
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