| Closing Inventory | 68,000 |
| Total Sales | 4,80,000 (including Cash Sales Rs. 1,20,000) |
| Total Purchases | 3,60,000 (including Credit Purchases Rs. 2,39,200) |
Goods are sold at a profit of 25% on cost.
SOLUTION
Let Cost of Goods Sold be = x
Gross Profit = x × 25 / 100
= 25x / 100
Cost of Goods Sold = Sales- Gross Profit
or, x = (4,80,000 – 25x) / 100
or, (x + 25) / 100 = 4,80,000
or, (125x / 100) = 4,80,000
or, x = (4,80,000 × 100) / 125
x =3,84,000
Cost of Goods Sold = x = Rs 3,84,000
Cost of Goods Sold = Opening Inventory (Stock) + Purchases − Closing Inventory (Stock)
3,84,000 = Opening Inventory + 3,60,000 − 68,000
Opening Inventory = 3,84,000 − 2,92,000
= Rs 92,000