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SSC Financial and Cost Accounting P-1
QUESTION #9649
Question 1
A dependent branch sells goods at a markup of 20% on cost. Opening Stock = Rs. 30,000; Goods Sent to Branch = Rs. 90,000; Cash Sales = Rs. 120,000. What is the Closing Stock?
Correct Answer Explanation
COGS at cost = 120,000 × 100/120 = Rs. 100,000. Closing Stock = Opening Stock + Goods Sent – COGS = 30,000 + 90,000 – 100,000 = Rs. 20,000. This is the standard method for calculating closing stock when markup is given.
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