If opening stock is Rs. 2,45,000, Purchases Rs. 15,00,000, Sales Rs. 17,40,000 and Rate of gross profit on cost is 20%, then closing stock will be

Rs. 3,53,000
Rs. 2,95,000
Rs. 2,45,000
Rs. 1,95,000

The correct answer is A. Rs. 3,53,000.

To calculate closing stock, we can use the following formula:

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

We know that opening stock is Rs. 2,45,000, purchases is Rs. 15,00,000, sales is Rs. 17,40,000 and rate of gross profit on cost is 20%.

The cost of goods sold can be calculated as follows:

Cost of goods sold = Sales * (100 – Rate of gross profit on cost)/100

= 17,40,000 * (100 – 20)/100
= 14,04,000

Therefore, closing stock = 2,45,000 + 15,00,000 – 17,40,000 – 14,04,000
= 3,53,000

The other options are incorrect because they do not take into account all of the relevant information. Option B is incorrect because it does not take into account the cost of goods sold. Option C is incorrect because it does not take into account the rate of gross profit on cost. Option D is incorrect because it is the opening stock, not the closing stock.

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