Question

goods worth ₹ 700 were sent on 25.3.2017 as ''sale on approval '' for 800 and the approval was not received

Answer 1

Explanation:

as on 31-march

goods are still laying as a closing stock

therefore, as per as 2 closing stock should be valued at COST or NRV which ever is lower and

this closing stock should be shown in trading account as closing stock under goods sold on approval basis

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