Tax Paid Formula

Tax Paid Formula

Tax paid during the year can be calculated by the following formula.

Tax Paid = opening Tax payable + Tax levied during Year – Closing Tax payable

Example

Opening – Tax payable = 25,000

Closing – Tax Payable = 40,000

Tax Levied- Raw material= 50,000

How much tax paid during the year

Solution

Tax Paid = opening Tax payable + Tax levied during Year – Closing Tax payable

=25000+50,000-40,000

=35000 (Tax paid during the year)

Stock Consumed Formula

Stock Consumed Formula

Stock or raw material consumed can be calculated by the following formula.

Stock Consumed = opening stock + purchases – closing Stock

Example

Opening Stock – Raw material = 10,000

Closing Stock – Raw material = 5,000

Purchases- Raw material= 40,000

What would be stock consumed

Solution

Opening Stock – Raw material         = 10,000

Add: Purchases- Raw material=          40,000

Closing Stock – Raw material =          (8,000)

Raw material consumed                     42,000

Credit Purchases Formula

Credit Purchases Formula

Credit Purchases can be calculated by the following formula.

Credit Purchases= Closing Creditor Balance + Cash Paid – Opening Creditor Balance

Example

Creditor – Opening Balance =  30,000

Creditor – Closing Balance =   50,000

Cash Paid during Year=          80,000

Solution

Credit Sale= Closing Creditor Balance + Cash Paid – Opening Creditor Balance

= 40,000+80,000-40,000

=90,000 (Credit Purchases)

Credit Sales Formula

Credit Sales Formula

Credit Sales can be calculated by the following formula.

Credit Sale= Closing Debtor Balance + Cash received – Opening Debtor Balance

Example

Debtor – Opening Balance =  40,000

Debtor – Closing Balance =   50,000

Cash received during Year=   60,000

Solution

Credit Sale= Closing Debtor Balance + Cash received – Opening Debtor Balance

= 50,000+60,000-40,000

=70,000 (Credit Sales)

Stock Closing Balance Formula

Stock Closing Balance Formula

Stock or inventory closing balance can be calculated by the following formula.

Closing balance = Opening Stock + Purchases – Sales

Example

Opening Balance Inventory = 20,000

Purchases during the Period = 70,000

Sales made during the Period = 40,000

What would be Closing Balance?

Solution

Closing balance = Opening Stock + Purchases – Sales

=20,000+70,000-40,000

=50,000 (Closing Balance)

Trade Payable Closing Balance Formula

Trade Payable Closing Balance Formula

Trade payable closing balance can be calculated by the following formula.

Closing balance = Opening Balance + Credit Sales –Cash received

Example

Opening Balance of Trade payable = 20,000

Credit Purchases during the Period = 50,000

Cash Paid during the Period = 10,000

What would be Closing Balance?

Solution

Closing balance = Opening Balance + Credit Purchases – Cash Paid

=20,000+50,000-10,000

=60,000 (Closing Balance)

Trade Receivable Closing Balance Formula

Trade Receivable Closing Balance Formula

Trade receivable can be calculated by the following formula.

Closing balance = Opening Balance + Credit Sales –Cash received

Example

Opening = 10,000

Credit Sales = 30,000

Cash Received = 15,000

What would be Closing Balance?

Solution

Closing balance = Opening Balance + Credit Sales –Cash received

=10,000+30,000-15,000

=25,000 (Closing Balance)