Answer to Question #134680 in Accounting for Babulal

Question

Calculate closing stock and cost of goods sold :

Opening stock ₹ 5000; sales ₹ 16000; carriage inwards ₹ 1000; sales return ₹ 1000;. Gross profit ₹ 6000; purchase ₹ 10,000; purchase return ₹ 900.

Answer 1

1| Calculation of Closing stock:

Opening stock ₹ 5000

Add: Purchase ₹ 10,000

Less: Purchase return ₹ 900

Less: Sales ₹ 16000

Add: Sales return ₹ 1000

Add: Gross profit ₹ 6000

Closing stock= ₹ 5100

2| Calculation of cost of goods sold (COGS):

Opening stock ₹ 5000

Add: Net Purchase

(₹ 10,000 - ₹ 900) ₹ 9100

Less: Closing stock ₹ 5100

COGS= ₹ 9000