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 Member (Account Deleted) student [ Scorecard : 508] Posted On 06 June 2012 at 19:45 Q/- Chetan Ltd recorded the following information as on 31st ,2004 stock(1-4-03)               Rs40,000 Purchases                    Rs80,000 sales                              Rs100,000 Itis noticed that goods worth Rs30,000 were destroyed due to fire against this, insurance company accepted the claim of Rs14,000. The company sells good at cost 33%.The value of closing inventory,after taking into account the above transation is (A)75,000        (B)15000      (C)25000         (D)NIL   PLEASE SOLVE ABOVE QUESTION STEP BY STEP ,LET ME KNOW HOW TO SOLVE IT Akshita student [ Scorecard : 99] Posted On 06 June 2012 at 19:56 what is the answer to this? Member (Account Deleted) student [ Scorecard : 508] Posted On 06 June 2012 at 20:05 answer given in book is 15,000 piyush tanwar student [ Scorecard : 312] Posted On 06 June 2012 at 20:08 the given profit % is on cost or sales? intermediate(ipc)course no [ Scorecard : 1449] Posted On 06 June 2012 at 20:14 closing inventory = 53200*+80000-1000000+14000-30000 = 17200 *profit 33% on cost = 40000+33% on 40000 = 53200 Akshita student [ Scorecard : 99] Posted On 06 June 2012 at 20:15 i am getting the answer 15000 but by taking profit at the rate of (100/3)%... because if we have opening stock 40000 and purchases 80000... this implies that we have goods worth 1,20,000 which we can sell...  now goods worth Rs. 30,000 were destroyed by fire.. and that leaves us with goods worth Rs. 90,000 to sell... also.. if the rate of profit on sale is taken to be (100/3)%, then the rate of profit on sales will be 25%... thus 25% of 1,00,000 is 25000... we know selling price - profit = cost so 1,00,000 - 25,000 = 75000.. so closing stock is 90,000 - 75,000.. that is 15,000 you get the answer a lot quicker if you solve it by making trading account.... but just check the rate of profit... Total thanks : 2 times piyush tanwar student [ Scorecard : 312] Posted On 06 June 2012 at 20:15 profit ratio u entered is wrong... it should be 33.33% on cost or 25 % on sales Attached File : 277514 992266 chetan ltd.xlsx downloaded 121 times Total thanks : 2 times Akshita student [ Scorecard : 99] Posted On 06 June 2012 at 20:17 @ piyush thats what i suggested piyush tanwar student [ Scorecard : 312] Posted On 06 June 2012 at 20:20 @ aksh*ta..  Manish made a mistake in profit ratio.... it should be 33.33% on cost or 25% on sales Akshita student [ Scorecard : 99] Posted On 06 June 2012 at 20:21 ya... i wrote the solution above.. anyways thanks...

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