1.

The stock was physically verified on 24th March and was valued at Rs.2,00,000. Goods are normally sold by the trader at a profit of 25% on cost. After stock taking the following transactions have taken place till 31st March. Sales of Rs.2,21,600 which includes: (A) Sales of Rs.10,800 at 20% more than the normal selling price. (B) Sales of Rs.10,800 at 10% less than the normal selling price. Required: Determine the value of stock to be taken to the Balance Sheet of PCT Ltd. as at 31st March.

Answer»

Statement Showing the Valuation of Stock As At 31st March

ParticularsRs.
A. Value of Stock as at 24th March 
B. Less: Cost of Goods sold
2,00,000
Normal Sales [80% of (2,21,600 - 10,800 - 10,800](1,60,000)
Abnormal Sales [80% of (10,800 × 100/120)](7,200)
[80% of (10,800 × 100/90)](9,600)
C. Value of Stock as at 31st March23,200



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