Question

The Profit and loss account of Hanuman showed a net profit of 6,00,000, after considering the closing
stock of? 3,75,000 on 31st March, 2016. Subsequently the following information was obtained from
scrutiny of the books:
(1) Purchases for the year included ? 15,000 paid for new electric fittings for the shop.
(1) Hanuman gave away goods valued at 40,000 as free samples for which no entry was made in
the books of accounts.
(ii) Invoices for goods amounting to 2,50,000 have been entered on 27th March, 2016, but the
goods were not included in stock.
(iv) In March, 2016 goods of 2,00,000 sold and delivered were taken in the sales for April, 2016.
(v) Goods costing 75,000 were sent on sale or return in March, 2016 at a margin of profit of 33-1/3%
on cost. Though approval was given in April, 2016 these were taken as sales for March, 2016.
Calculate the value of stock on 31st March, 2016 and the adjusted net profit for the year ended on that
date.​

Answer 1

Calculation of value of inventory on 31st March, 2016

Explanation:

Pls refer to the pic below