ajayrcsingh
Jul 15, 2015, 11:11 PM
Calculate Closing Stock as on 30.6.2015
Stock as on 1.1.2015 ₹ 70,000 , Purchase from 1.1.2015 to 30.6.2015 ₹ 6,00,000 , Sales from 1.1.2015 to 30.6.2015 ₹ 8,80,000 , G.P. Ratio for 2014 was 30%. In 2015, the cost of purchases and selling prices have increased by 20% and 10% respectively above the levels prevailing in 2014.
Solution
Closing Stock: on FIFO basis = ₹ 12,000 & on LIFO Basis ₹ 10,000
Particulars
2014
₹
2015
₹
Particulars
2014
₹
2015
₹
To Opening Stock
70,000
70,000
By Sales
8,00,000
8,80,000
To Purchase
5,00,000
6,00,000
By Closing Stock (Balancing Figure)
10,000
12,000
To Gross Profit @30% on normal sales
2,40,000
2,22,000
8,10,000
8,92,000
8,10,000
8,92,000
Please explain above solution specially Gross Profit 2,22,000 & Closing Stock
Stock as on 1.1.2015 ₹ 70,000 , Purchase from 1.1.2015 to 30.6.2015 ₹ 6,00,000 , Sales from 1.1.2015 to 30.6.2015 ₹ 8,80,000 , G.P. Ratio for 2014 was 30%. In 2015, the cost of purchases and selling prices have increased by 20% and 10% respectively above the levels prevailing in 2014.
Solution
Closing Stock: on FIFO basis = ₹ 12,000 & on LIFO Basis ₹ 10,000
Particulars
2014
₹
2015
₹
Particulars
2014
₹
2015
₹
To Opening Stock
70,000
70,000
By Sales
8,00,000
8,80,000
To Purchase
5,00,000
6,00,000
By Closing Stock (Balancing Figure)
10,000
12,000
To Gross Profit @30% on normal sales
2,40,000
2,22,000
8,10,000
8,92,000
8,10,000
8,92,000
Please explain above solution specially Gross Profit 2,22,000 & Closing Stock