92 :- From the following information, calculate value of Opening Inventory:
Closing Inventory Rs 68,000.
Total Sales Rs 4,80,000 (Including Cash Sales Rs 1,20,000)
Total Purchases Rs 3,60,000 (Including Credit Purchases Rs 2,39,200)
Goods are sold at a profit of 25% on cost.
Solution :-
Gross Profit = Revenue from Operation – Cost of Goods Sold
25x/100 = 4,80,000 – x
(25/100 + 1)x = 4,80,000
Cost of Goods Sold = 4,80,000 x 100/25
= Rs 3,84,000
Cost of Goods Sold = Opening Inventory + Purchases – Closing Inventory
3,84,000 = Opening Inventory + 3,60,000 – 68,000
Opening Inventory = 3,84,000 – 3,60,000 + 68,000
= Rs 92,000