Question

Good of 600(sales price) sent on sale or approval basis were included in the sales book.The profit included in the sales was 20% on cost. Stock with the party will increase closing stock by a.600 b.500 c.400 d.none of the above​

Answer 1

Answer:

b.500

Explanation:

sales price-600

G.p on cost-20% i.e 1/5 then on sales it will be 1/6

therefore, cost price of goods sent on approval will be:- 600-600÷6=500

value of closing stock will be 500