BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If opening stock is Rs. 50, 000, purchase is Rs. 4, 20, 000 and closing stock is Rs. 30, 000, then what is the cost of goods sold-
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Rs. 4, 40, 000
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Rs. 4, 70, 000
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Rs. 4, 00, 000
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Rs. 5, 00, 000
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Explanation:
Detailed explanation-1: -The formula for Closing Stock = Opening Stock + Purchases – Cost of the Goods Sold.
Detailed explanation-2: -opening stock=10000 closing stock =8000 purchased amount = 10000-8000=20002000 is the correct answer.
Detailed explanation-3: -22, 000 = 3, 500 + Purchases-1, 500. 22, 000 = 2, 000 + Purchases. Purchases = 22, 000-2, 000. Purchases = 20, 000.
Detailed explanation-4: -Therefore, Stock turnover ratio is 4 times.
There is 1 question to complete.