The opening stock of raw materials is ₹40,000 while the closing stock of raw materials is ₹60,000 and the material consumed during the financial year is ₹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 during the year = Opening stock + purchases - closing stock
1,90,000 = 40,000 + purchases - 60,000
Purchases = 1,90,000 + 60,000 - 40,000
= ₹2,10,000