Question

W320 10. Ramesh sent 400 TV, @ + 1500 per TV, at invoice price to Naresh on consignment. It includes 25% of cost Ramesh paid = 2000 for sundry expenses. Naresh sold 350 TV. at 1800 per TV, and Naresh paid 1000 sales A expenses and 2000 advertisement expenses. Calculate the value of unsold stock. Answer: 7 60250 EssayType Questions:​

Answer 1

Answer:

Closing stock is valued on cost price not invoice price

Invoice price oer TV is given 1500

profit 25%on cost

so cost price = 1500*100/125=1200

Out of 400 TV set 350 sets are sold 50 TVsets are in stock

Valuation of closing stock = 50*1200=60000

(+) Expense of consignor = 2000*50/400= 250

Value of stock = 60250

Explanation:

Non recurring expenses of consignee are included in valuation of closing stock But inthis question consignee pais sale and advertising expenses these are recurring expenses so not include in valuation of closing stock