Question

Mr. Mehta sent 1,000 shirts costing Rs 400 each to Mr. Kehta on consignment basis. Mehta paid Rs 20,000 as expenses. Kehta sold 900 shirts at Rs 500 each. His selling expenses amounted to Rs 15,000. Find the value of closing inventory. (a) Rs 42,000 (b) Rs 43,500 (c) Rs 40,000 (d) Rs 45,000

Answer 1

Answer:42000

Explanation:

(400x1000)+20000(expense)

=420000

Unsold goods (1000-900)=100

Therefore Closing inventory =

420000x100/1000=42000