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Cpt accounts urgent

Hari Mundayur (CA IPCC) (184 Points)

19 June 2014

Cost of goods sold is Rs. 5,00,000, and opening stock is twice more than closing stock. Purchase is twice that of opening stock. Calculate the amount of purchase.

1.		Rs. 1,00,000
2.		Rs. 2,00,000
3.		Rs. 4,00,000
4.		Rs. 6,00,000

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20 Replies

JAINENDRA JAIN (ACS/CA) (1668 Points)
Replied 19 June 2014

ans is a)100000/-

1 Like

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 20 June 2014

COGS = OP STOCK + PURCHASE - CLOSING STOCK. LET CLOSING STOCK BE x. So opening stock is two times more than closing stock I.e x+2x Purchase is twice opening stock ( which is3x) So purchase is 6x So on solving X = 50000 6x = purchase = 300000 rs.

kathirvalu arjun (lawyer) (23 Points)
Replied 20 June 2014

COGS= OP.STOCK+PUCHASE-CLO.STOCK 5lks =2lks +4lks -1lks So purchase = 4,00,000/-

kathirvalu arjun (lawyer) (23 Points)
Replied 20 June 2014

OP.stock=2(CLO.stock) , x=2x. Clo.stock=2puchase 2x =2(2x),therefore purchase=4x By solving we get x=1,00,000/- So 4x=4,00,000

CA Raj Doshi (Practising CA) (8924 Points)
Replied 20 June 2014

Please read the terminologies used .. 2 times MORE ... and twice .. so this cannot be same in my opinion.

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banadeep (nil) (21 Points)
Replied 20 June 2014

Let closing stock is a random constant x this implies openin stock is 2x now purchase is double f openin stock thus purchase is 4x!! Putin in eqn 500000=4x+2x-x thus x=100000 N purchase is 400000!! N stating if 2times more n Twice convey not the same sense then eqn wud be reduced to 8x=500000 whr 6x wud be purchase!!

JAINENDRA JAIN (ACS/CA) (1668 Points)
Replied 20 June 2014

Sorry I forgot to multiply my answer with 4 . ans would be 400000.

Akhilesh Deshmukh (ARTICLE) (86 Points)
Replied 20 June 2014

COGS= 500000

Opening Stock= 2* Closing Stock

Purchase=2 * Opening Stock

COGS= Opening Stock+ Purchase-Closing stock

500000=Op Stk+ 2Op Stk- Op Stk/2

500000=(2Op stk+4Op stk -Op Stk)/2

Op stk= 200000

Therefore Purchase = 400000

Hari Mundayur (CA IPCC) (184 Points)
Replied 20 June 2014

Got answer from my friend.. I dont know whether its the correct one.

"Let closing stock be x , therefore, opening stock will be 2x, and purchase will be 4x,.

Cost of goods sold= opening stock+ Purchases-Closing stock (As per given example)

ie, 2x+4x-x = 500000

5x = 500000

x= 100000

closing stock(x) = 100000

Opening stock (2x) = 200000

Purchase (4x) = 400000

Is it the way to answer?

U.V S KIRAN (Student) (27 Points)
Replied 20 June 2014

your approach is absolutely correct. but I found calculation mistake in answer. I think X = 62500. and purchases = 375000. but unfortunately it is not there in options.