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When Sales of Rs. 1,54,000, Purchases Rs. 1,20,000, Opening Stock Rs. 32,000 and the Rate of the Gross…

Gross profit is 20% of purchases, or 0.20 × Rs. 1,20,000 = Rs. 24,000. Cost of goods sold is Rs. 1,54,000 − Rs. 24,000 = Rs. 1,30,000. Closing stock is Rs. 32,000 + Rs.…

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When Sales of Rs. 1,54,000, Purchases Rs. 1,20,000, Opening Stock Rs. 32,000 and the Rate of the Gross Profit is 20% on Purchases, the Closing Stock would be:

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Correct answer C

Gross profit is 20% of purchases, or 0.20 × Rs. 1,20,000 = Rs. 24,000. Cost of goods sold is Rs. 1,54,000 − Rs. 24,000 = Rs. 1,30,000. Closing stock is Rs. 32,000 + Rs. 1,20,000 − Rs. 1,30,000 = Rs. 22,000.

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