Question
Goods purchased ₹1,00,000. Sales ₹90,000. Margin 20%
on cost. Closing Inventory = ?Solution
Let Cost = 100, Margin = 20%, so Sales = ₹120. Cost to Sales ratio = 100 / 120 = 5/6 Given Sales = ₹90,000 → Cost of Sales = 90,000 × 5/6 = ₹75,000 Purchases = ₹1,00,000 Closing Inventory = 1,00,000 - 75,000 = ₹25,000
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