The opening stock of raw material is ₹40,000 while the closing stock of raw material is ₹60,000 and material consumed during the financial year is of ₹1,90,000. Calculate the amount of material purchased during the current year.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹2,10,000
Material consumed is worked out from the stock and purchase figures:
Material consumed = Opening stock + Purchases − Closing stock
So, Purchases = Material consumed + Closing stock − Opening stock
Purchases = ₹1,90,000 + ₹60,000 − ₹40,000
Purchases = ₹2,10,000