Question

`{:("Calculate the value of Closing Stock from the following information:"," Rs."),("Purchases","93,000"),("Wages","20,000"),("Sales","40,000"),("Purchases","1,20,000"),("Carriage Outwards","3,200"),("Rate of Gross Profit "25%" on Cost.","16,000"):}`

Answer 1

Correct Answer - Closing Stock - Rs. 33,000.
Let the Cost = Rs. 100, Gross Profit = `25%` of Cost, i.e., Rs. 25.
Sales = Cost + Profit = Rs. 100 + Rs. 25 = Rs. 125,
Gross Profit on Sales = Rs. 25/Rs. 125 or 1/5 on Sales, i.e., Rs. `1,20,0000xx1//5=Rs. 24,000.`