Invertory Problem
Q1. C Ltd. Recorded the following information as on March 31,2005.
Stock as on April01,2004------------------80000
Purchases------------------------------------160000
Sales ------------------------------------------200000
It is noticed that goods worth Rs.30000 were destroyed due to fire. Against this, the insurance company accepted the claim of Rs.20000
The company sells goods at cost plus 33.33%.The value of closing inventory, after taking into account the above transaction is
Ans. Opening + Purchases – Closing stock = cost of goods sold
80000 + 160000 –closing stock =
I couldn't solve it further and don't know the adjustment of loss by fire and insurance claim
Plz solve and explain it
Thank you
CAclubindia
