Question

A trader has an opening inventory of Rs 70,000 on 1.1.2016, which consists of a slow moving item costing Rs 10,000 and was written off by Rs 2,000. This item was sold for Rs 9,000 during the year. Barring the transaction, the gross profit on sales for the year 2016-17 remained at 20%. The sales and purchases during the year amounted to Rs 5,09,000 & Rs 3,78,000 respectively. Find the value of closing inventory on 31.03.2017: (a) Rs 44,000 (b) Rs 38,000 (c) Rs 40,000 (d) Rs 42,000

Answer 1

(d) Rs 42,000....

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