The value of opening stock as on 1stJanuary 2003 was Rs. 7,000 stock of Rs. 23,000 in January were purchased. COGS was Rs. 21,000. What was the value of closing stock as on 31st January, 2003?

The correct answer is: B. Rs. 5,000

Explanation:

The value of closing stock is calculated as follows:

Closing stock = Opening stock + Purchases – Cost of goods sold

In this case, we are given that:

• Opening stock = Rs. 7,000
• Purchases = Rs. 23,000
• Cost of goods sold = Rs. 21,000

Therefore, the value of closing stock is:

Closing stock = Rs. 7,000 + Rs. 23,000 – Rs. 21,000 = Rs. 5,000

Option A is incorrect because it is the value of opening stock.

Option C is incorrect because it is the value of cost of goods sold.

Option D is incorrect because it is the sum of opening stock and purchases.