Multiple choice

Opening stock Rs. 1, 00, 000, sales Rs. 5, 00, 000, gross profit @ 25% on sales, purchases Rs. 5, 00, 000. The closing stock is

  1. Rs. 1, 25, 000

  2. Rs. 2, 25, 000

  3. Rs. 3, 00, 000

  4. Rs. 3, 25, 000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Gross profit is 25% of sales (Rs. 5,00,000 × 25% = Rs. 1,25,000). COGS = Sales - GP = Rs. 5,00,000 - Rs. 1,25,000 = Rs. 3,75,000. Cost of goods available = Opening stock + Purchases = Rs. 1,00,000 + Rs. 5,00,000 = Rs. 6,00,000. Closing stock = Rs. 6,00,000 - Rs. 3,75,000 = Rs. 2,25,000. Option B is correct.

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