Question No 21 Chapter No 19
21. A firm sells goods at Cost plus 25%. Sales to credit customers ¾ of total was 1,80,000. His Opening and Closing Stocks were 20,000 and 15,000 respectively. Find out the value of Purchases.
The solution of Question No 21 Chapter No 19:-
| Credit Sales | = | 1,80,000 3/4 of Total Sales |
| Gross Profit | = | 25% of Cost or 20% of Sales |
| Gross Profit | = | 48,000 |
| Cost of Goods Sold | = | Net Sales – Gross Profit |
| Cost of Goods Sold | = | 2,40,000 – 48,000 = 1,92,000 |
| Cost of Goods Sold | = | Opening Stock + Purchases – Closing Stock |
| 1,92,000 | = | 20,000 + Purchases – 15,000 |
| Purchases | = | 1,87,000 |
Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of previous Chapters: –
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- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
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T.S. Grewal’s Double Entry Book Keeping