Question

If average inventory is ₹ 50,000 and closing inventory is ₹ 2,000 less than the opening inventory, opening and closing inventory will be ______.

Options

• ₹ 52,000 and ₹ 50,000

• ₹ 50,000 and ₹ 48,000

• ₹ 48,000 and ₹ 46,000

• ₹ 51,000 and ₹ 49,000

Answer 1

If average inventory is ₹ 50,000 and closing inventory is ₹ 2,000 less than the opening inventory, opening and closing inventory will be ₹ 51,000 and ₹ 49,000.

Explanation:

Let the Opening Inventory be x.

Closing Inventory = `x - 2,000`

Average Inventory = `("Opening Inventory" + "Closing Inventory​")/2`

50,000 = `(x + x - 2,000)/2`

50,000 × 2 = `2x - 2,000`

1,00,000 + 2,000 = `2x`

 1,02,000 = `2x`

`x` = `(1,02,000)/2`

Opening Inventory `(x)` = ₹ 51,000

Closing Inventory = Opening Inventory − 2,000

= 51,000 − 2,000

= ₹ 49,000