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sales 300,000
purchase 276,000
closing stock 24,000
gross profit 30,000
sales return 3,000
purchase return 5,000what is the opening stock for the month?
A)$23,000
b)$31,000
c)$20,000
d)$25,000hi.. if i’m not wrong the ans s/d be C) 20,000.. (correct me if i’m wrong)
there are 2 ways to solve: 1) trial n error OR 2) you work backwards..
however, trial n error will be time consuming..
to solve this qn, you need to understand your trading (i.e. Statement of Comprehensive Income)..
Sales – Sales Returns = Net Sales ( 300,000 – 3,000 = 297,000)
Purchases – Purchases Returns = Net Purchases (276,000 – 5,000 = 271,000)
Net Purchases – Closing Stock = Cost of Goods Sold (271,000 – 24,000 = 247,000)
Since you know ur Gross Profit, take your Cost of Goods Sold + Gross Profit (247,000 + 30,000 = 277,000)..
Last Step: Take your Net Sales – 277,000 = 297,000 – 277,000 = 20,000 (final answer)..
u can double check using the trading income statement.. :)..
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sales(297,000) – G.P (30,000) = COS (267,000)
COS= op Inv + Purchases – Cl Inv
Op Inv= COS – Purchases + Cl Inv
= 267,000 – 271,000 + 24000
= 20,000yeah ans z ‘C’…n using equation(COS=op inv+pur-clos inv) 2 solve such ques z gd technique.
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