Question

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

Answer 1

Answer:

b. 640

Explanation:

sales price-800

G.p on cost-25% then on sales it will be 20%

Therefore,value of inventory(cost) will be 800-20%(800)=640