Sales = Rs. 50,000/-, G.P. on sales is 10%, Purchases 40,000/-, Opening Stock
= 70,000/-, Find the closing stock.
Cost of goods Sold =Opening stock + Purchases - Closing stock (1) In this case G.P. (Gross Profit) = 10% on sales = 10% of Rs. 50,000/ = 5,000/- Means cost of goods sold = Sales – Profit on sale =50000-5000 =45000 (2) Now from (1) & (2) 45000 = 70000 + 40000 – Closing Stock Or Closing Stock = 65,000/-
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