The situation
Opening stock is ₹6 lakh. Purchases are ₹15 lakh before ₹1 lakh supplier returns. The ledger shows ₹8 lakh ending stock but the verified physical count is ₹7 lakh.
Your task
What cost of sales does the verified count imply?
Reveal step-by-step solution
Set up the problem
Net purchases = ₹15 − ₹1 = ₹14 lakh. Goods available = ₹6 + ₹14 = ₹20 lakh.
Work through the numbers
Cost of sales is ₹20 − ₹7 = ₹13 lakh versus ₹12 lakh at the ledger balance.
Interpret the result
Investigate the ₹1 lakh gap. The physical-count figure raises cost of sales by ₹1 lakh in this simplified reconciliation.
What to remember
Use net purchases and a verified closing stock figure. Explain whether a stock difference should be shown separately.