Question

Average inventory=Rs.30,000. Closing Inventory is Rs. 5,000 more than opening inventory will be (a) Rs.32,500 (b) Rs.35,000 (c) Rs.30,000 (d) Rs.60,000

Answer 1

Goods of Rs. 800 (sales price) sent on sale on approval basis were included in the sales book. The profit included in the sales was 25% on cost. Inventory with the party will increase our closing inventory by (a) Rs. 600 (b) Rs. 640 (c) Rs. 680 (d) Rs. 700