Question

Goods were sent to a customer on sale or Return basis at cost +30%. The invoice price is Rs 6,500. At the end of the year market value of the goods is 5% less than the cost. Closing inventory is valued at (a) Rs 5,000 (b) Rs 4,750 (c) Rs 4,800 (d) Rs 6,170

Answer 1

Answer:yes

Explanation:

Year end inventory=( 6500*5%)-6500=6175₹ So option D is correct as it rounded and we are not bothered about the 30% because it is a sales markup.