This is a advanced problem in D.S. Rawat sir book, AS - 2. The question is
"NDA Pvt. Ltd. deals is goods manufactured by a large concern. NDA Pvt. Ltd. purchased the goods for amount for Rs.100000/- which will be sold at cost plus 10% of cost price. On account of competition NDA Pvt. Ltd. is forced to sell the goods with the consent of manufacturing company at 25% below cost price of these goods.
At the end of financial year, the manufacturing company supplied to NDA Pvt. Ltd. goods (free of cost) of such quantity and value so as to enable it to recover the loss of 35% of cost price on the total volume of goods sold by it
Calculate the value of stock as per AS - 2? The answer given in the book is Rs.25000/-.
I tried to get the solution but I couldn't, I don't know where I am going wrong.
It will be helpful if I get the solution.
CAclubindia
