If average inventory is Rs 50 000 and closing inventory is Rs 2 000 less than the opening inventory ...........

General Accounting Principles Ratio analysis

If average inventory is Rs 50,000 and closing inventory is Rs 2,000 less than the opening inventory, opening and closing inventory will be :

Rs 52,000 and Rs 50,000

Rs 50,000 and Rs 48,000

Rs 48,000 and Rs 46,000

Rs 51,000 and Rs 49,000

GIVEN: average inventory is Rs 50,000 and closing inventory is Rs 2,000 less than the opening inventory

average inventory = opening inventory + closing inventory / 2

LET OPENING INVENTORY = X

CLOSING INVENTORY = X - Rs,2.000

Rs 50,000 = X+X- Rs.2,000

Rs. 50,000*2 = X+X - Rs.2,000

Rs.1,00,000 = 2X - Rs.2,000

Rs.1,00,000 + Rs.2,000 = 2X

Rs.1,02,000 = 2X

Rs.1,02,000= X

X = Rs. 51,000 (opening inventory)

X - Rs.2000 = CLOSING INVENTORY

Rs, 51,000 - Rs.2,000 = closing inventory

Rs. 49,000 = closing inventory

By: Subhash Singh

Submit Error