Inventory problem

On April 07,2005,i.e. a week after the end of the accounting year 2004-2005, a company undertook physical stock verification.The value of stock as per physical stock verification was found to be Rs.35000.

I.Goods costing Rs.5000 were sold during the week.

II.Goods received from consignor amounting to Rs.4000 included in the value of stock

III.Goods earlier purchased but returned during the period amounted to Rs.1000.

IV.Goods earlier purchased and accounted but not received Rs.6000

After considering the above, the value of stock held as on march 31,2005 was..............?

 

Replies (7)

Answer is 43000 (35000+5000-4000+1000+6000)

35000

+5000 (Since this stock is not present on 7/4 but was a part of stock on 31/3)

- 4000 ( vice versa of above )

+1000 ( Reason same as 1st )

- 6000 ( since they were not recd. till 31/3. and we are calculating the amount of stock HELD on that day ... therefore we will reduce it )

ANS 31000

 

Regards

Tushar

Tushar,

 

He is talking about book value of the stock as on 31st march, 2005. As per the Records & accounting Entries, we have the stock but on physical verification only, we get to know that  till date we dont receive the stock.

So,  thats why we will add 6000 .

Vikas can u plz explain the last point to me i could not able to understand the last point

Thank you

ohhh yes vikas u r rite... n sorry for the mistake...

Rishebh,

 

The Point is  If you didn't do that physical verification, You have the stock of 6000 as per records. So, while Calculation Closing stock value as on 31st march you had had considered 6000 rupees of stock.

So, while solving question we have to consider that there was no physical verification of stock on 31st march.

I think its now cleared.

 

 

 

i agree with vikas

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