Question

serious damage for stock. The following information is serious
from the books and records salvaged. All stock were destroyed
expect to the extent of Rs.6,200.
Rs.
Stock on 1.1.2018 40,000
Purchase during 2018 1,45,000
Sales during 2018 2,00,000
Stock on 31-12-2018 25,000
Purchases from Jan 1 to Oct 10 1,52,200
Sales from Jan 1 to Oct 10 1,89,000
Assuming that the rate of gross profit on sales has been the
same in 1992 as in 1991, estimate the value of the stock in the
godwon at the time of fire

Answer 1

Explanation:

Deduct the amount of salvage from the value of stock on the date of fire to get the value of loss of stock. By Stock on the date of fire XX (bal. fig.) Illustration 1: Find out sales when cost of goods sold is 80,000 and Gross Profit ratio 20%.