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exess of closing stock over opening stock........????

harish .k (STUDING) (306 Points)

03 November 2010

Hi to every one..

i have a query regarding , while going through single entry system , in a problem they given EXCESS OF CLOSING STOCK OVER OPEING STOCK IS Rs 5000/-

Whatis the meaning of it ???

is it to take closing stock value as 10000/- and opening stock valueas 5000/- is it correct or wrong plz reply....

Thanks in advance

HARISH

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12 Replies

Simranjeet Singh (Proprietor at S Simranjeet & Associates Company Secretaries) (4396 Points)
Replied 03 November 2010

Yes u r right bro................... it says that if opening stock is N then closing stock will be N + 5000...

but how u take that 10,000. is it's given in problem or u r assuming this fig ???

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sudhakar ca cwa (service) (1518 Points)
Replied 03 November 2010

YA You are right,

If closing stock value is 10.000 then opening stock value is Rs.5000.

if u dnt have the opening or clsoing stock value then Take this Rs.5000/- as clsoing stock to slove ur problem

Azim Khan ACA,CS,CMA*,LLB* (Proprietor) (1312 Points)
Replied 03 November 2010

it means if opening stock is "x" then the closing stock will be " x+5000"

if you take opening stock as Nil, the closing stock will be Rs.5000.

harish .k (STUDING) (306 Points)
Replied 03 November 2010

thanks for replying ...

i assumed it as 10000/- closing stock because problem given as excess of closing stock over opening stock is 5000/-

the problem is find out the purchase from from details during calender Yr 2006

openig debtors 17000

closing debtors 28000

collectons 212000

excess of closing stock over opening stock is 5000

GP RATIO 25%

FIND PURCHASES?

Rohit (Student) (80 Points)
Replied 03 November 2010

For the first one bro u r partly correct coz u cannot assume cl stock to be 10000 it can b any amount but the difference betwn cl stock and op stock must come 5000..

Ur Second solution..

First of all we will make debtors a/c to find out our sales figure..since no info regardng cash sales is given so we will assume the credit sales to b only sales made during the year..

So ur credit sales will come to Collections+cl debtors-op debtors..

wich comes to 212000+28000-17000=223000.

Then we can find out the GP wich 25% on sales..

wich comes to 223000*25%=55750.

And our COGS will be 223000-55750=167250

Now, As we knw that COGS=Op stock+Purchases-Cl stock

So, we can write COGS+Cl stock-Op stock=Purchases

We have COGS=167250 and Cl stock-Op stock=5000

So our Purchases will be = 167250+5000=172250

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harish .k (STUDING) (306 Points)
Replied 03 November 2010

Thanks for replying ROHIT,

i to got the same value purchases as 172250/-

just i wanna to conform what is the procedure and is it correct or wrong

parminder (student) (29 Points)
Replied 03 November 2010

IT MEANS THAT OPENING STOCK IS 'X' AND CLOSING STOCK IS 'X+5000'.IF THE AMOUNT OF OPENING STOCK IS NOT GIVEN IN THE QUESTION HOW CAN U TAKE IT AS 5000.

harish .k (STUDING) (306 Points)
Replied 03 November 2010

it is difference between COGS & CLOSING STOCK

Rohit (Student) (80 Points)
Replied 03 November 2010

so did u did it in the same way??

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 03 November 2010

Originally posted by : CA Azim Khan
	it means if opening stock is "x" then the closing stock will be " x+5000" if you take opening stock as Nil, the closing stock will be Rs.5000.