inventories
This query is : Resolved
24 May 2010
The books of T Ltd. revealed the following information.
Particulars- opening inventory 6,00,000. purchase during 2003-0434,00,000. sales during the year 2003-04 48,00,000.
on March 31 2004, the value of inventory as per physical-stock taking was rs.325000.The company's gross profit on sales has remained constant at 25%.The management of the company suspects that some inventory might have been pilfered by a new employee.what is the estimated cost of missing inventory.Plz explain this with clear and understandable steps.
Thank you!!!
Particulars- opening inventory 6,00,000. purchase during 2003-0434,00,000. sales during the year 2003-04 48,00,000.
on March 31 2004, the value of inventory as per physical-stock taking was rs.325000.The company's gross profit on sales has remained constant at 25%.The management of the company suspects that some inventory might have been pilfered by a new employee.what is the estimated cost of missing inventory.Plz explain this with clear and understandable steps.
Thank you!!!
daya shankar singh
(Expert)
24 May 2010
It will not easy to predict the exat figure but u may determine the nearby amount by the following activity:-
1)You consider the amount of closing stock of past years
2)Production during the year
3)sale and sale return
4)If there is gap between actual and the physical,ask from the concerned authority
1)You consider the amount of closing stock of past years
2)Production during the year
3)sale and sale return
4)If there is gap between actual and the physical,ask from the concerned authority
25 May 2010
As per your information, if GP is constant 25% then GP is 25% of 48 Lac = 12 Lac
Now closing stock should be opeing stock plus purchase plus direct exp plus gross profit minus sales i.e
= 6 + 34 + 12 - 38 = 4 lacs
i.e estimated cost of good pilfered = 4 lac - 3.25 lac = .75 lac.
Now closing stock should be opeing stock plus purchase plus direct exp plus gross profit minus sales i.e
= 6 + 34 + 12 - 38 = 4 lacs
i.e estimated cost of good pilfered = 4 lac - 3.25 lac = .75 lac.
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