Q 3 - Suppose in January, a shopkeeper Purchases 5 Mobile Phones @ 10000 each It sells 2 Mobile Phones @ 16000 each Calculate Profit and Loss

View Answer

What is Closing Stock?
Stock Which we have not purchased but not sold is called Closing Stock
It is shown on Right Side in Profit and Loss

 

Is Closing Stock Valued at Purchase Price or Sales Price?
It is valued at Purchase Price
Example;-In our case,Closing Stock is calculated at purchase Price of 30000(3 piece *10000=30000)

 

What is Opening Stock
Stock which we have at beginning of a month or year is called Opening Stock
Closing Stock of Last Month becomes Opening Stock of Current Month

 

Q 4 - Continuing Last Question There were 3 Mobile Phone Closing Stock left in Janaury All 3 were sold in February at 18000 each Prepare Profit and Loss of Feb

View Answer

Q - 5

Particulars Quantity Rate Amount
Opening Stock 3 30000 90000
Purchase 5 30000 150000
Sales 6 40000 240000
Closing Stock 2 ? ?


Calculate Value of Closing Stock

View Answer

Q - 6 - Suppose Next month 

Particulars Quantity Rate Amount
Opening Stock 2 30000 60000
Purchase 10 30000 300000
Sales 11 50000 550000
Closing Stock 1 ? ?
View Answer

 

 

 

 

 

  1. Accounts and Finance
  2. Step 1 Basic of Accounts -Debits and Credits
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
Jail