Question

closing stock of business concern was 55000 it is overvalued by 10% in the books. find out the value of closing stock​

Answer 1

Answer:

value of closing stock will be

55000×10/100

5500

Answer 2

The actual value of the closing stock is  49500.

If the closing stock of a business concern was 55000 and it was overvalued by 10% in the books, the value of the closing stock would be less than 55000.

To calculate the actual value of the closing stock, we can find the difference between the overvalued amount and the original value:

Overvalued amount $= 55000 * 10% = 5500$= 5500

Actual value of closing stock = 55000 - 5500 = 49500

So, the actual value of the closing stock would be 49500.

• Closing stock, also known as ending inventory or end-of-period inventory, refers to the value of the unsold goods or raw materials that a business has on hand at the end of an accounting period, such as the end of a quarter or a fiscal year.
• The closing stock is an important component of a company's balance sheet, as it represents the value of the assets that the company still has available to sell.
• The value of the closing stock is determined by taking a physical count of the inventory at the end of the period and adjusting for any changes in the inventory's value, such as price changes or obsolescence.
• The closing stock is a key factor in determining a company's overall financial performance, as it has a direct impact on the company's gross profit and net income.

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