Discussion
What will be the amount of purchase if, cost of goods is Rs. 80,000, opening inventory Rs. 5,000 and closing inventory Rs. 6,000
Answer: B
The purchases are Rs. 81,000. The cost of goods sold is found as opening inventory plus purchases less closing inventory. \[80{,}000 = 5{,}000 + P - 6{,}000\] \[P = 80{,}000 + 6{,}000 - 5{,}000 = 81{,}000\] The figure Rs. 79,000 would result from adding the closing stock and subtracting the opening stock the wrong way round, and Rs. 69,000 and Rs. 91,000 come from other slips in the adjustment for opening and closing inventory.
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