20 June 2013
A company sends cars to dealers on "sale or return" basis.All such transactions are however treated like actual sales and are passed through the sales day book.Just before the end of the financial year,two cars which had costed Rs 55,000 each have been sent on "sale or return" basis and have been debited to customers at Rs 75,000 each.Cost of goods lying with the customers would be-- (a)Rs 1,10,000 (b)Rs 1,50,000 (c)Rs 75,000 (d)Rs 55,000
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