Hi Candidate,
The Stock Turnover is equal to 5,00,000 which is equal to 4 times the Initial Stock= 500000×4= 20,00,000.
Now as there is 25% Profit on the Opening stock and adding up more 40,000 on the closing stock, so adding 25% on 2000000= 400000+40000= 4,40,000.
So the value of Closing Stock is= 20,00,000 + 4,40,000=24,40,000.
Hope that this answer helps you.
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