Multiple choice

Calculate the amount of gross purchases from the data: COGS - Rs. 2,20,000, opening stock - Rs. 35,000, closing stock - Rs. 55,000, purchase return - Rs. 5,000, sales return - Rs. 2,000, carriage inward - Rs. 10,000, carriage outward - Rs. 4,000

  1. Rs. 2,35,000

  2. Rs. 2,30,000

  3. Rs. 2,32,000

  4. Rs. 2,45,000
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A Correct answer
Explanation

COGS = Opening stock + Net purchases + Direct expenses - Closing stock 2,20,000 = 35,000 + Net purchases + 10,000 - 55,000 Thus, net purchases = Rs. 2,30,000 Gross purchases = Net purchases + Purchase return                              = 2,30,000 + 5,000 = Rs. 2,35,000

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