Q4
A trader prepared his accounts on 31" March, each year. Due to some unavoidable reasons, no stock taking could be possible till 10 April, 2020 on which date the total cost of goods in his go-down came to Rs. 5,00,000. The following facts were established between 31" March and 10 April, 2020.
Sales Rs.3,50,000 (including credit sales Rs.2,00,000)
b. Purchases Rs.1,75,250 (including cash purchases Rs.89,999) Sales Return Rs.85.000
On 10 March the trader sent goods costing Rs.2,00,000 on sale on consignment basis, 80% of which was sold by 31" March and the remaining was sold on 6 April
e On 15 March, goods of the sale value of Rs.1.50,000 were sent on sale or return basis to a customer, the period of approval being three weeks. He returned 40ns of the goods on 4 April, approving the text the customer was billed on 9 April
Purchase return Rs.55.000
The trader had also received goods costing Rs.1,50,000 in March, basis, 20% of the goods had been sold by 31" March, and another 40% by 8 April. These sales are not included in above sales.
for sale on consignment
Goods are sold by the trader at a profit of 25% on cost. You are required to ascertain the value of Inventory as on 31 March 2020
Answers
Concept: The process of calculating the worth of products or materials in hand by a corporation or on the market purchasable in an exceedingly store at a specific time.
Answer:
Statement of the Valuation of stock on 31st March, 2020
Particulars Amount
Value of stock as on 10 April 2020 5,00,000
Add: Cost of sales at the period from
31" March to 10 April, 2020.
Sales (3,50,000-85,000) 2,65,000
less: Gross profit (25% of 1,50,000) 37,500 1,12,500
Cost of goods sent on approval
basis (75% of 90,000) 67,500
Less: Purchasing at the period from
31" March to 10 April, 2020. 1,75,250
Unsold stock out of goods received
on consignment basis (40% of 1,50,000) 60,000 2,35,250
4,44,750
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